Overfunded Life Insurance might be a term you’ve never heard before, but it might also be exactly what you need to create tax-free wealth for you and your heirs after you’re gone. For as little as a car payment a month, you can begin your own policy to ensure your monthly/annual premium can mean tax-free access to you and tax-free wealth to your children/grandchildren/heirs upon your death.
Overfunded Life Insurance is the use of Dividend Participating Whole Life Insurance to provide you access to your money while providing a death benefit to your heirs. You can access your policy’s cash value by loaning yourself money for larger expenses that arise. Instead of borrowing money from the bank with high interest rates, you lend yourself money and pay yourself back plus interest! The best part is that you cannot pull out more money until you pay yourself back and your death benefit is still there (less your loan balance) if something happens while you owe.
Have you ever thought of your life’s savings as a castle? I like this visual when you think about your savings. If you’re curious about what your life insurance can get you in the long run, check out this webinar: