You are taxing me on MY money?

You are going to tax ME on my own money?
Strategies to make your money work for you. 


An intelligent move for a first-time house buyer in their 20’s or 30’s may be to use the funds from their life insurance policy as an investment in real estate. One of the reasons this can be an attractive option is because you can continue to earn income on your savings and assets while still having access to the money you require for a down payment on a home by taking out a policy loan. The average savings rate has plummeted to about 5.1% as of 2022, so being able to continue to save your money while not missing out on the home of your dreams is something that is seen as enticing.

Another reason why taking a policy loan can be a tempting option is because you won’t have to pay taxes on the loan amount because policy loans are not treated as taxable income. A good place to start would be by assessing your life insurance policy to determine how much cash value has grown and whether there are any penalties or surrender charges involved. You might be able to access the cash value in your permanent life insurance policy, such as whole life or universal life.

When looking for money to put down on your first house, think about taking out a policy loan. A policy loan is an appealing alternative because its interest rate is often lower than that of other loans. It’s essential to consider additional choices, such as a home equity loan or line of credit, or to locate potential partners for a real estate transaction. You can make wise, well-informed decisions that are in line with your long-term financial goals by working with a financial advisor who has knowledge of both life insurance and real estate investing.

Using your life insurance policy for cash to invest in real estate may be a sensible move to think about if you’re in your 20’s and 30’s attempting to buy your first home. Using this strategy, you can pay for your down payment or other home-related expenses by accessing the cash value of your permanent life insurance policy, such as whole life or universal life.

Ultimately, using the cash value of your life insurance policy to make real estate investments can be a wise approach to increase your wealth and fulfill your desire for homeownership.

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