Insurance strategies

10 plays in this category. Each one covers the mechanics, who it fits, and the estimated impact — then generates a deep dive against your own numbers.

• Insurance

  Infinite Banking Concept (Whole Life Policy Loans)

  Overfund whole life, borrow against cash value at 5–6%, arbitrage into real estate.

  Access to 4–5% tax-free growth PLUS 5–6% liquid capital
• Insurance

  §7702 Max-Funded Indexed Universal Life (Tax-Free Income)

  Overfund IUL to MEC line — tax-free retirement income via policy loans.

  Tax-free retirement income vs 32–37% bracket withdrawals
• Insurance

  Split-Dollar Life Insurance (Employer/Employee Cost Split)

  Business pays premium, executive gets death benefit — pennies on the dollar of tax exposure.

  $500K–$5M of death benefit at $0.05/$1K tax cost
• Insurance

  Private Placement Life Insurance (PPLI) for UHNW

  Wrap hedge funds/PE inside a tax-free life policy — no LTCG, no ordinary income.

  20–35% higher after-tax IRR on alt-asset allocations
• Insurance

  Premium-Financed Life Insurance

  Borrow at SOFR+1.5% to pay life insurance premiums, arbitrage against policy crediting.

  $20M–$100M+ death benefit funded with ~0 out-of-pocket premium
• Insurance

  §831(b) Micro-Captive Insurance Company

  Business pays deductible premiums to owner-controlled captive — up to $2.85M/yr tax-free receipts.

  $500K–$1M/yr in deferred tax on retained underwriting profit
• Insurance

  Personal Umbrella + Excess Liability Stack ($5M–$50M)

  Layer umbrella and excess policies for $5M–$50M liability coverage at $500–$5K/yr.

  $5M–$50M liability coverage for pennies on the dollar
• Insurance

  Raise Deductibles + Self-Insured Retention (SIR)

  Take higher deductibles on rarely-claimed policies; pocket the premium savings.

  $500–$5,000/yr in premium savings
• Insurance

  Key-Person Life Insurance (Deductible? Sometimes)

  Company-owned life on a critical exec — cash value grows tax-deferred, death benefit tax-free.

  $1M–$10M tax-free liquidity on key person's death
• Insurance

  Cross-Purchase Buy-Sell Funded with Life Insurance

  Partners buy life on each other; death triggers tax-free buyout of deceased's shares.

  Full basis step-up on acquired interest = 20–40% tax savings at future sale