Using Indexed Universal Life for Real Estate Investing

Using Indexed Universal Life for Real Estate Investing

One of the greatest benefits of Indexed Universal Life (IUL) insurance policies is that they offer a “cash value” component. The cash value of an IUL comes from a portion of your premium payments, and grows based on the performance of a stock market index, typically varying between 7 and 9 percent. This allows for compounded growth over time.

Once a policy has accumulated substantial cash value, you can take a loan of this value, typically for a very low interest rate. This makes it a great vehicle for real estate investing. The cash you borrow can be used any way you want; for example for a down payment on an investment property, to pay for renovations, or to subsidize other related real estate expenses.

A great advantage of this method is that it does not trigger taxes as it is not considered a withdrawl but a loan. Repayment can occur during your life, or the amount owed can be taken against your death benefit when you pass.

Before using an IUL for real estate investing, it’s crucial to understand the policy’s terms, fees, and potential risks. Please call me or request a consultation to help determine whether this strategy aligns with your long-term goals.

If you’re interested in learning more or getting a quote, please call 512-922-1273, use our contact form, or schedule a time to speak.