Real Estate Investors

Put Your Money To Work In Two Places At One Time!

Leveraging the cash value of an overfunded life insurance policy to invest in real estate will achieve greater long term wealth accumulation. You have the growth of your cash value and any wealth created by leveraging the cash value.

This strategy is a way to put your money to work in TWO places at ONE time.  Not only will you get tax-free growth and retirement income from your policy’s cash value, you can actually make more money by putting your money to work in two places at one time.

If you are a real estate investor putting YOUR OWN money into deals, then this one simple trick will help you make more money doing the same thing you are doing today! 

What if you could put your money into an asset class that earns 6-8% returns?

What if you could use that asset as COLLATERAL to get a Line of Credit at Prime?

This means that you could take the new loan and use it to invest in real estate or financial alternatives and to the extent that your return exceeds your interest paid, you are adding value on top of your original investment.

A properly designed and funded Permanent Life Insurance Policy (Whole Life or Universal) allows you to do just that.

Insert Epiphany Here!

Most people know the basics of Life Insurance, but they haven’t really put it all together to make this connection.

Most people know that permanent life insurance has cash value.  Its no secret.

Most people know that the cash value of permanent life insurance earns interest/dividends.  They just thought it was lower or took longer to accumulate.

Most people know that they can cash out their policy or take loans.

The last point is the biggest misunderstanding.  Most people incorrectly think that you borrow from the cash value of your life insurance policy. That is not the case. You borrow against your cash value.  The difference is what makes this so powerful. Your cash value is still growing even while you are borrowing against it to invest in real estate. You literally have two assets working for you at the same time.

See for yourself: Texas Insurance Statutes covering policy loans; Sec. 1101.009 (b) and Sec. 1101.009 (c)

Many banks and financial institutions will offer a Cash Value Line of Credit. We can assist you in finding a lender to facilitate this.

Video example: Putting Your Money to Work in Two Places at One Time – Example

Another way to look at this would be to think of a “Magic Checking Account“. Unlike a regular checking account that pays no interest and actually sends your money to the recipient of the check, a Magic Checking Account pays interest and allows your money to grow tax-free.

Even better, when you “Write a check“, the “Check” is drawn against a credit line secured by the balance in your Magic Checking Account. The interest on your credit line balance is being offset by the interest your account is earning. That is the way Permanent Life Insurance works!

This sounds way too good to be true

Your cash value is safely growing and compounding TAX-FREE from now until the day you decide to retire.  But, unlike an IRA or 401(k), every day between now and the time you retire, you can access funds from a Bank or the Insurance Company that are secured by your cash value. Your retirement savings can be pulling double duty. Is your IRA or 401(k) helping to put food on the table today?

Borrowing rates are currently ~5%.  So ANY investment you make with that borrowed money, that earns more than the 5% borrowing rate, is adding value to your overall portfolio.

Just a 1% spread, for example, is 1% more than you would have made. Ever heard of the Rule of 72? The Rule of 72 states that if you divide 72 by the interest rate your money is earning, the result is the number of years it will take your money to double. For example, if your money is earning 8%, your money will double every 9 years.  And if your money is earning 9%, it will double every 8 years. 10% is roughly 7 years.

The Rule of 72 is the most powerful concept in Retirement Planning. 

Any incremental gain on your overall savings could mean the difference between retiring with $1 Million or $2 Million or between $2 Million and $4 Million. Think about this: a 30-year old has 35 years until he reaches what used to be considered retirement age.  Any money he invested at 7% at age 30 would have doubled 3 Times over 35 years. $1000 would have turned into $2000, $2000 would have turned into $4000, and $4000 would have turned into $8000.  But if he could have been earning just 1% more (8%), that $1000 would be rolling over to $16,000 the very next year.

The value of $1,000 growing at 4 different rates. Think 2% isn't a big difference in returns? Look at 7% vs 9%. 8% vs 10%. 2% represents twice the savings over 35 years.
The value of $1,000 growing at 4 different rates. Think 2% isn’t a big difference in returns? Look at 7% vs 9%. 8% vs 10%. 2% represents twice the savings over 35 years.

Listen to an interview with Tom Rutkowski explaining this on the Real Estate Investor Radio Podcast

You can go on doing what you are doing. Or you can apply these strategies to step your business up to the next curve. Click on the appointment button right now to set a time to learn how this can work for your business.

Don’t fall for Gimmicks! Make sure your policy is designed right.

Check out our extensive set of resources below to help Real Estate Investors learn how to Leverage the Cash Value of Permanent Life Insurance to Put Their Money to Work in TWO Places at One Time.


Please provide your information to access our FREE REPORT: “Tax-Advantaged Real Estate Investing When You’ve Maxed Out Your IRA“.

1. Learn how it is done,

2. Learn why it works,

3. Learn how you WILL make more money using it, and

4. The Report will address all of your concerns and misconceptions about life insurance.

Please provide your name and email address for your free download.

[Premium Content] Have you scanned all the FREE Resources here and still have questions? Check out this 45-Minute Video Course. Satisfaction Guaranteed or your money back.

Listen to my recent Interview on “Podcast for Patriots” where I discuss this strategy with host Jim FroehlichClick image to listen

Listen to My Interview on “The Best Real Estate Investing Advice Ever” Podcast with host Joe Fairless

Click image to listen

Interview with Susan Colwell on Real Estate Invesor Radio

Watch a Recorded Presentation for the Global Real Estate Education Network

Quick Overview of the Concept of Leveraging a High Cash Value Policy

Financial Analysis Showing Benefit of Putting Your Money To Work In Two Places at Once

DoublePlay Video Icon
Click to watch the “Double Play” Video!

Life Insurance Basics With Emphasis on the Features Necessary for Leverage

Click here to join our mailing list to receive monthly Financial Tips

Questions? Click the button to schedule a time for us to call you.

Schedule an appointment
Hungry for more information?Be sure to check out the new "Webinar" page before you leave!

If you're hungry for more information on this topic, check out our new "Webinars" page. We've launched a new series of weekly 20-min webinars covering all aspects of  "The Double Play". After many years of doing this, I've heard the same questions and concerns from many of you. In addition, I've witnessed many of the costly policy design mistakes people have made working with other agents. Learn how to avoid these costly mistakes.  If you can't make it, recordings will be made available for later viewing.