Structuring Life Insurance for Tax-Free Loans During Life | Nathan Medin
Nathan Medin, Owner and Business Development Senior Partner at Universal Financial Consultants, breaks down the strategy for leveraging banks to build tax-free loans through life insurance policies.
Three Things You’ll Learn:
- How to benefit from a life insurance policy during life.
- Tips for structuring assets within insurance policies to protect against estate taxes.
- The three types of tax buckets and where that leaves you.
Nathan Medin, Owner and Business Development Senior Partner at Universal Financial Consultants, breaks down the strategy for leveraging banks to build tax-free loans through life insurance policies.
There are two big killers of wealth: inflation and taxes. Nathan explains that taxes have been harder to navigate because CPAs and investment companies never previously combined efforts. But he has developed a strategy that considers the forward-thinking approach to tax brackets and liabilities.
The US national debt is listed at $31 trillion, but the unfunded liabilities are estimated at $187 trillion. This leads to Nathan’s grim predictions for tax liabilities in the future:
[10:39] “Tax liabilities [are] going up because they’re not paying off this number from the people that don’t have any money. And the number is, if you look at the total liabilities down here, per citizen, it’s over half a million dollars per citizen. […] Where are they gonna get that money? They’re gonna get it from people that are successful.”
Nathan breaks down the three tax buckets used for asset investments and the myths associated with 401K and retirement plans for wealth management.
Tax diversification and the concept of premium-financed insurance address this tax issue by leveraging bank investments. And while most people see life insurance as a death benefit, Nathan explains that structuring through cash value components allows for the policy to be used during life.
These loan provisions allow you to take money out of the policy, tax-free, and use it as a loan to invest in real estate or other assets. Using life insurance policies as loan investments is not limited to the wealthy as Nathan explains how to set them up and the protections it provides the bank’s money and your assets.
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