Overfund whole life, borrow against cash value at 5–6%, arbitrage into real estate.
Design a MEC-tested max-funded whole life policy (Mass Mutual, Guardian, Penn Mutual, NYL) heavy on paid-up additions rider. After 3–5 years, cash value grows tax-deferred at 4–5% + dividends; borrow up to 95% via policy loans at 5–6% simple interest — money keeps compounding INSIDE the policy while you deploy loan proceeds externally (real estate, business). Death benefit pays off loan; net remainder tax-free to heirs.
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Overfund IUL to MEC line — tax-free retirement income via policy loans.
Business pays premium, executive gets death benefit — pennies on the dollar of tax exposure.
Wrap hedge funds/PE inside a tax-free life policy — no LTCG, no ordinary income.
Borrow at SOFR+1.5% to pay life insurance premiums, arbitrage against policy crediting.
Business pays deductible premiums to owner-controlled captive — up to $2.85M/yr tax-free receipts.
Layer umbrella and excess policies for $5M–$50M liability coverage at $500–$5K/yr.
Take higher deductibles on rarely-claimed policies; pocket the premium savings.
Company-owned life on a critical exec — cash value grows tax-deferred, death benefit tax-free.