When it comes to exploring avenues for wealth building, legacy-minded individuals often utilize index universal life insurance, which can be premium financed.
What is Index Universal Life Insurance and why is it so popular among those with means?
Sometimes an investor’s goal is to set up the family inheritance with as much protection as possible.
Another investor may want to diversify their portfolio with less tax restrictions and therefore bigger payout.
An investor with a business to build might leverage the insurance to protect those funds.
Lastly, all of these investors know they need a buffer asset. This is a type of asset used to supplement income when the market is down (versus drawing from a principal account and affecting its growth potential).
Premium Financed Index Universal Life Insurance has typically been reserved for the ultra-wealthy, but it doesn’t have to be.
Business Owners, Entrepreneurs, Doctors, Lawyers – these people are often overlooked in this industry – we believe everyone should have access to this powerful investment vehicle.
For many, considering insurance as an asset isn’t a typical line of thinking. However, index universal life insurance is not new.
At Enhanced Funding Solutions, our firm specializes with over 15 years of experience in this specific asset class.
Premium Financed Life Insurance allows clients to maximize an often untapped asset.
Why Premium Financed Life is Lucrative – Even in a Down Market
More money is better, right? Except when that money is vulnerable and otherwise unprotected.
Investors who are planning for retirement can utilize this growth tool to compliment a diversified equities portfolio.
Typically, we see a balance between equities (stocks, ETFs, etc.) and fixed investments (like bonds, REITS, etc.). This is because it isn’t wise to put all of your funds into equities.
Index Universal life insurance is considered a fixed investment, meaning it’s not affected by a volatile market.
Those concerned about their financial legacy can establish an incredibly beneficial, tax-saving premium financed life insurance solution.
Doing this means they don’t have to worry about income in a down market during their retirement years.
Historically, the typical IRR (Interest Rate Return) has been between 8% and 15%.
When those inevitable down years occur, retirees have a buffer asset to utilize. Rather than touching their principal retirement account, they draw tax-free income from their policy just like a checking account.
Is Index Universal Life Insurance a Good Option?
To put it simply, yes. Other names for this type of asset are 9:7 or premium funding. The point is to enhance your wealth by leveraging your life insurance as the asset it is.
Here’s how it works:
Determine the rough total value of your assets and see if you qualify for life insurance premium financing
Contact an advisor who specializes in enhanced funding, such as our firm, to learn about your options
Receive a custom plan designed for your exact investment goals and choose the policy and carrier that best fit your needs.
Add this new stream of income to your portfolio.
Get Started with Enhanced Funding Solutions
The most important factor an investor should consider when reviewing premium financed life insurance is the firm’s experience and credibility.
Partnering with an experienced advisor who dedicates time to each individual client absolutely makes all the difference in the process. I founded this firm because of my experience having been a client first.
When it comes to protecting and growing wealth, we pride ourselves in being the absolute authority.
It’s not simply about getting a better life insurance policy and leveraging its value.
It’s about how that plays into the intricacies of any clients’ financial portfolio, their businesses, family and countless other factors.
When learning about your options, meet with your financial advisor and ask questions. We work directly with clients’ teams to identify their best possible financial positions.
Your policy can be making you money like any other asset. It’s one of the best, most advantageous investments, especially the sooner you begin.
EFS provides a complimentary review of your current policy’s performance. It shouldn’t be costing you money, but in fact, making you money.
Learn more about potential advisors and their firms to weigh their credibility.
Work with people you can trust with experience and vested interest in this specific type of policy.
Determine if you qualify for premium financed life insurance and let us help you select a policy designed for your specific needs.
There are countless ways to make your money work for you. Insurance is an asset. Shouldn’t it be working for you, too?
Wondering exactly how it works? Click below to download my free PDF to review real case studies:
Reach out to me today to explore the options. We’ll provide guidance and determine the best options for you or your clients. Together, we will strategize with specific goals in mind, and protect client assets from down markets like we saw in 2008 and 2020 and now 2022.
– Jeff Faine