Using Life Insurance to Build Wealth in Real Estate – Part 1

Originally published on June 25, 2024

YouTube Video UExyQlhPa0JKMTM1bkJqQVBJYjVZakgxVDk4Qy0xQ1hnXy4yQUJFNUVCMzVDNjcxRTlF

Summary<br />In this Real Estate Industry Update, host Daniel Raconte interviews Jeff Newman, a director at Jones Lowry, about how life insurance can be a valuable tool for real estate investors. They discuss the different types of life insurance, the tax benefits of permanent life insurance, and how it can be used for estate planning and expanding a real estate portfolio. They also share real-life examples and strategies for identifying potential high net worth clients in need of life insurance. In this conversation, Jeff Newman and Daniel Roccanti discuss various aspects of life insurance and its applications for real estate investors and operators. They cover topics such as wealth management, irrevocable life insurance trusts, estate planning, premium financing, and buy-sell arrangements. They emphasize the importance of working with professionals to tailor life insurance solutions to individual needs and circumstances.<br />Keywords<br />real estate, life insurance, wealth accumulation, wealth transfer, tax benefits, estate planning, liquidity, cash value, permanent life insurance, high net worth clients, life insurance, real estate, wealth management, irrevocable life insurance trust, estate planning, premium financing, buy-sell arrangements<br />Takeaways<br />Life insurance can be a valuable tool for real estate investors looking to build wealth.<br />There are different types of life insurance, including term insurance and permanent life insurance.<br />Permanent life insurance offers tax benefits, such as tax-deferred cash value growth, tax-free death benefit, tax-free policy loans, and tax-advantaged withdrawals.<br />Life insurance can be used for estate planning to provide liquidity and equalize assets among beneficiaries.<br />Cash value in a life insurance policy can be utilized by real estate investors to expand their real estate portfolio and provide liquidity for deals.<br />Strategies for identifying potential high net worth clients in need of life insurance include income replacement, retirement planning, and estate planning. Life insurance can be a valuable tool for real estate investors and operators, providing liquidity and financial protection in various scenarios.<br />Irrevocable life insurance trusts (ILITs) can help remove assets from an estate and reduce estate tax liability.<br />Premium financing allows individuals to borrow money to pay life insurance premiums, leveraging the potential growth of the policy's cash value.<br />Buy-sell arrangements are legal contracts that stipulate how a partner's share of a business will be reassigned if they die or leave the company.<br />Life insurance can be used to fund buy-sell agreements, providing liquidity to buy out a deceased partner's shares.<br />Working with professionals is crucial to ensure that life insurance solutions are tailored to individual needs and goals.<br />Titles<br />Using Life Insurance to Build Wealth in Real Estate<br />Understanding the Tax Benefits of Permanent Life Insurance Premium Financing: Leveraging Life Insurance for Liquidity<br />Tailoring Life Insurance Solutions to Individual Needs and Goals<br />Sound Bites<br />"We're going to underwrite you for a hundred thousand dollars of life insurance. And we'll take a look at your medical records and maybe we'll draw some labs from you. And eventually you'll get an offer from the insurance carrier. At which point I come to you and say, Daniel, write a check for a million dollars."<br />"A lot of high net worth families have significant real estate holdings or businesses. This can cause liquidity issues. You have someone they pass away and they have all these assets that unfortunately have, there's no liquidity there. You got to sell them. You got to do something. So, but you have a state inheritance attacks."<br />"What we see a lot of amongst real estate professionals is they get to a situation where they need money quickly and they have a phenomenal deal on their hands. They have a piece, they have an asset, a cost overruns, development issues, COVID, what have you, where all of a sudden there are hard money situations."<br />"We leave wealth management to the professionals on the client's team."<br />"I want everything else out of my estate that I possibly can. I want to take control away from myself, from my assets."<br />"If I own my life insurance in my own name, all of a sudden, the $10 million I have left to my name could also have a $20 million policy with it."

Join host Daniel Roccanti on this first of two episodes of the “Real Estate Industry Update” as he sits down with Jeff Newman, a director at Jones Lowry, to explore the strategic role of life insurance in real estate investment. Delve into the benefits and applications of different types of life insurance, focusing on how permanent life insurance can support wealth accumulation, provide significant tax advantages, and facilitate estate planning. They’ll cover key topics like irrevocable life insurance trusts, premium financing, and the importance of buy-sell arrangements in real estate.

Discover real-life strategies for expanding your real estate portfolio using life insurance and learn how to identify high net worth clients who could benefit from these financial tools. From leveraging life insurance for liquidity to tailoring policies to individual investor needs, this episode is packed with expert insights that can help you understand and maximize the use of life insurance in your real estate endeavors.

Key Takeaways:
*Understand the types of life insurance and their specific benefits for real estate investors.
*Learn how to use life insurance for effective wealth management and estate planning.
*Explore strategies like premium financing and the use of irrevocable life insurance trusts to enhance financial security and tax benefits.

Watch this insightful discussion to equip yourself with knowledge that could revolutionize your approach to real estate investment and wealth management.

#RealEstate #LifeInsurance #WealthManagement #EstatePlanning #TaxBenefits #InvestmentStrategies #HighNetWorth #FinanceTips #InvestInRealEstate #DanielRoccanti #JeffNewman

Stay informed and make the most of your real estate investments!

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Using Life Insurance to Build Wealth in Real Estate – Part 1