Investing in Real Estate with Life Insurance

[Bobby Paquette]

Who is investing in Real Estate with Life Insurance? What kind of policies do you have? How much are you able to use out of the policy? Any other details you can provide on it investing in real estate with it? 

[Matt Ruttenberg]

Full disclosure, I own an agency, but Indexed Universal Life vs. Whole Life is the conversation you're looking for.  I personally lean towards IUL because of the flexibility.  It does take some time to get the policy working for you, but also depends on how you're funding it.  I would wait until you're able to contribute at least $500 a month towards it.

Also, the design of the policy needs to be optimized properly.  In short, the death benefit needs to be "squashed" in order to promote cash value growth.  Thats because the majority of the costs are based on the death benefit and could, in the long term, cost you 6-digits in lost assets to the insurance costs.

The other thing to consider is the loan provisions and how they are calculated.  You want to achieve a "net 0%" loan in order to use it's full potential.  

A few more details here, but this is a good start.