Life Insurance as an Investment (video)

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Life Insurance as an Investment (video)

William Reynolds
Self · Stafford, TX · Member since 2015 · 45 posts · 1 vote

Real Estate Investors usually like this conversation (it helps with flipping)...

Let's say you have a Capital account with $250,000 in it and a 25% rate of return on past deals. There are advantages for collateralizing money into an "IUL" (Indexed Universal Life Policy)...for a much better net gain after paying short term capital gains taxes (i.e. @ 28%). You'll get the tax deduction on investment interest paid and the earnings credited in an "IUL" is not taxable (i.e. @ 9% conservative compounding rate of return).  You'll have the ability to use money for another opportunity.

Our video explains how the "IUL" works...

There are many uses for the "IUL" and it's one of the fastest growing trends for the risk averse investor (one who prefers lower returns with known risks rather than higher returns with unknown risks.).

"Taxable Savings" changes made can be drastic after redirecting money into an "IUL", and the Cash Value can be used as collateral without interrupting compound growth. More options become available soon for those having an "IUL" policy in place.  "Cash Value" continues to grow protected and most banks will charge only around 2-3% for a line of credit that is collateralized by the Cash inside of a life insurance policy. This is just scratching the surface of possibilities.

Our Blog: "IUL gaining momentum": 

http://reynoldsIUL.blogspot.com

Our YouTube Channel for more videos:

https://www.youtube.com/channel/UCyD-Hn0SCGIbwDPHu...

  Reynolds Financial Services (RFS Group) - TX license #1382854

http://reynoldsfinancial-assoc.com

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  • Kevin Romines
    Lender · Winlock, WA · Member since 2013 · 1k+ posts · 1k+ votes
    10y

    There is no one size fits all solution when it comes to life insurance. Where most people get hung up on life insurance is when they look at it only and purely as an investment.

    First of all, you must have a need for life insurance. That said, virtually everybody has a need that would benefit their heirs if life insurance was in place. Some life insurance policies have an investment component to them. Its when those two needs come together, that's when  a whole life type product may be used in such a way that there are benefits that may out weigh other investment options? Its up to each individual to educate themselves and reach their own conclusions based on the needs, wants and goals?

    We are a Dave Ramsey ELP. That said, we agree with the model of buy term and invest the rest. This model works best for the masses and with the model of living debt free. However there are times that a whole life type product with a cash value can be very useful, like when your investing in real estate.

    I'm not here to sway anybody one way or another, I personally belive in both depending on the overall situation? My goal with this comment is to point out the percentions people have, and encourage everyone to truly research what works best with your goals and then when you feel you truly understand it, then go forward.

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