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Life Insurance and Real Estate Investing

The Double Play: Putting your money to work in two places at one time by leveraging the cash value of a maximum over-funded cash value life insurance policy.

If you’ve been searching the internet looking for the pros and cons of using life insurance to invest in real estate you’ve probably found that its hard to find reliable information about life insurance. As soon as you start to think it makes a lot of sense, you find another article that tells you to stay away from life insurance and that it is a rip-off. So how do you know what to believe?

There is lots of hype, but very little in the way of factual information.  

Well, you’ve come to the right place. Just bookmark this page right now right now because you’ll want to check out all of the blog posts, web pages, and videos covering this subject in great detail. I use facts and data to prove that The Double Play works.

This website and my YouTube Channel are devoted to the concept of The Double Play: putting your money to work in two places at one time by leveraging the cash value of a maximum over-funded life insurance policy. 

Keep reading because I’m going to:

  1. Explain The Double Play and show you real numbers and examples,
  2. Debunk all of the Myths as we separate fact and reality from hype and BS, and
  3. Show you valuable tips that real investors are using and your life insurance agent probably isn’t telling you.

Be sure to check out the Intro to the Double Play Video below and watch to the end because I give a pro-tip that you’re not going to get anywhere else.

You are going to be putting a substantial amount of money into a policy so you want to make sure you are doing it right.

The goal of this website to demystify life insurance and to give you the tools you need to know — without talking to an agent — to get the most efficiently-designed policy so that you can maximize your wealth accumulation through your utilization of The Double Play. The only thing you should need an agent for is to see an illustration and purchase a policy.

I’m going to bust all of the myths and misconceptions about life insurance and show you real numbers and facts.

Leveraging the cash value of a maximum over-funded life insurance policy to invest in real estate will achieve greater long term wealth accumulation than simply investing directly in real estate alone. You have the growth of your cash value and any wealth created by leveraging the cash value.

The Double Play allows you 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.

The key to The Double Play is to make sure you are using a properly-designed and maximum over-funded life insurance policy. You want to minimize the costs and fees in a policy to make sure that your cash value is maximized.

If you are a real estate investor putting YOUR OWN money into deals, then this simple approach will help you make more money doing the same thing you are already doing.

  • 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?
  • 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 maximum over-funded Permanent Life Insurance Policy (Whole Life or Universal) allows you to efficiently 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 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

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 a line of credit that is 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?

ANY investment you make with that borrowed money, that earns more than the loan 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. 

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.


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FREE REPORT

Download my FREE REPORT: “The Double Play: Leveraging Life Insurance for Real Estate Investing “.

  1. Learn how it is done,
  2. Learn why it works and see some numerical examples
  3. Learn how you WILL make more money using it, and
  4. The Report will address your concerns and misconceptions about life insurance.

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


Check out all the Recorded Webinars Here

Check out the Educational Videos on my YouTube Channel


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



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


Interview with Susan Colwell on Real Estate Investor Radio


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

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No Rendering of Advice: The financial content in this document is provided for your personal information only. It is not intended for trading purposes, and cannot substitute for professional financial advice. Always seek the advice of a competent financial advisor with any questions you may have regarding a financial matter. Information in this document is not appropriate for the purposes of making a decision to carry out a transaction or trade nor does it provide any form of advice (investment, tax, or legal) amounting to investment advice, or make any recommendations regarding particular financial instruments, investments, or products.

The primary reason for purchasing life insurance is the death benefit protection. Any other benefit is purely ancillary.

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.