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Retirement Planning: Life Insurance as an Investment

Many people never realize they can use life insurance as an investment for retirement.

Whether you’re nearing retirement age, or planning ahead for you and your family’s future, simply considering a Premium Financed Life Insurance policy is a step in the right direction.

Nobody wants to worry about whether their finances or current market conditions will allow them to retire on time and comfortably.

After all, retirement is a time to celebrate all you’ve accomplished in your life so far. The less stressful the process, the better.

Premium Financed Life Insurance (PFLI), also referred to as a Life Insurance Retirement Plan (LIRP) can provide you with additional retirement income that is low-risk, tax-free and easily accessible.

Best of all, when working with our team at Enhanced Funding Solutions, there is little for you to do other than sit back and watch your wealth grow.

Read on to learn more whether PFLI makes sense as part of your retirement plan.

How Does PFLI Generate Retirement Income?

By treating life insurance as an investment, Premium Financing puts your money to work for you.

Instead of paying your life insurance premium each month over decades and never seeing a return, the PLFI strategy involves overpaying toward your policy over a 5-, 7- or 10-year span.

That overpayment is then leveraged as capital to secure additional contributions from a lender. All the while, a lender simultaneously contributes toward the policy. 

Your insurance company provides a return on the cash value of your policy, resulting in an 8-15% average return!

Put simply, PFLI allows you to utilize the value of your life insurance policy – which you would be paying toward anyway – to build wealth for retirement.

Am I Eligible for Premium Finance Life Insurance?

Many people in my network never fully explored utilizing their life insurance as an investment because they didn’t know they could do that.

The truth is, many people are eligible to take advantage of this investment strategy. It’s not just for the ultra wealthy.

PLFI may be right for you if you:

  1. Earn a minimum household income of $200,000 or more and can make a $35,000 annual contribution for 10 years.

  2. Want to diversify your investment portfolio with a low-risk, fixed asset.

  3. Want to pay 0% taxes now and in retirement on your income; while ensuring your beneficiaries can access your funds tax-free in the future.

  4. Are looking to add new investments to your portfolio because you’ve maxed out current plan contributions.

  5. Have a strong safety net investment / nest egg.


For many decades, just about anyone who worked hard and earned a good living over their career could expect to comfortably retire and be able to support their families.

Unfortunately, having the financial freedom to retire is not a given today as it once was.

​​Since 2008, we’ve seen many retirees and the soon-to-be retirees continue working longer than expected because 1) their retirement plan was not sufficient or 2) the taxes owed on their funds would be too high.

At Enhanced Funding Solutions, our goal is to set you up for success so you can retire on your terms, with peace of mind that your and your family’s financial future is protected.

Learn more about how Enhanced Funding Solutions can help make your money work smarter and harder for you, reach out any time: or 773-318-9608.

Jeff Faine, Founder



901 N Lake Destiny Drive, STE 380

Maitland, FL 32751


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