At its core, the term “Enhanced Funding” means exactly what you would expect. It’s a method of enhancing your financial status through funding.
In my niche, this approach enhances investor portfolios by leveraging their life insurance policy as a buffer asset.
Put simply, my goal is to help your money work for you.
How Does Enhanced Funding Work?
Also known as Premium Financed Life Insurance or Leveraged Life Insurance, this strategy is a smart, secure option for anyone seeking to protect their wealth while generating additional retirement income.
Did you know our solutions historically have provided a return of 8%-15% ? That means over-funding a life insurance policy enables you to reap consistently larger returns than many investment options available today.
Consider this scenario:
With a traditional, self-funded life insurance policy, you can contribute tens of thousands dollars over several decades.
During this time, the only return you receive is knowing that your family will receive a death benefit, should it ever be needed.
While that peace of mind is valuable, wouldn’t it be more valuable if the money you contributed to the policy was also earning some sort of return?
With Enhanced Funding, you can leverage your insurance policy to ensure your family is taken care of while simultaneously building wealth.
An investment vehicle like Premium Financed Life Insurance offers the best of both worlds: a way to protect your wealth today and building retirement income for tomorrow.
How Do I Add Leverage to My Life Insurance?
At Enhanced Funding Solutions, we work with clients to maximize IRR (interest rate returns) on their life insurance through these basic steps:
First, we work with our clients to obtain a life insurance policy that is best suited to their current and long-term financial goals.
Next, the client contributes a fixed amount toward the policy (usually starting at $30,000 or more a year) for up to 10 years. This contribution is typically made by taking out a loan from the bank.
At the same time, using the life insurance policy as collateral, a lender enhances the clients’ contribution, significantly increasing the cash value of the policy. This is what we call LEVERAGE.
As you now know, the insurance company provides a return on the cash value of the policy. By adding leverage to your life insurance, you position yourself for much stronger returns.
How Does Enhanced Funding Protect Wealth?
Investors look for ways to protect their wealth at any stage of the economic cycle, especially during downturns.
Diversifying your portfolio with fixed investments, such as Premium Financed Life Insurance, provides a valuable hedge against bear markets.
We call PFLI a Buffer Asset because it’s the kind of investment you access when other accounts should remain untouched.
Your PFLI account has tax-free, unrestricted distributions.
This means you don’t need to move capital that should remain invested in the market to recover its value.
Adding a buffer asset to your portfolio gives you access to income without having to worry about uncertain economic times.
In short, you can maintain your lifestyle without the threat of outliving your savings.
Do you want to depend on the government to make sure you live comfortably in your golden years? Yeah, I don’t either.
Why Work with Enhanced Funding Solutions?
My firm’s core belief is to “Enhance Your Tomorrow” and we focus on the underutilized Enhanced Funding strategy because we know this approach is not just for the 1%.
Wealthy investors have been taking advantage of Premium Financing for years.
Why isn’t this investment vehicle more widely available to all who qualify?
Previously, this strategy has not been set up to serve a demographic who could qualify and depend on it. Our firm is changing that.
The best way to enhance your tomorrow is to make sure you’re in the best financial position for growth. I work side by side with clients to further solidify their strongest possible position.
To learn more about how Enhanced Funding Solutions can help make your money work smarter and harder for you, reach out any time: jeff@enhancedfunding.com or 773-318-9608.
Click here to download our Guide to Premium Financed Life Insurance.