Fund real estate deals on your timeline.
Borrow against a policy’s cash value for a down payment, a renovation, or a bridge between deals, with no credit check and no property underwriting for the loan itself. The insurer charges interest, paid to the insurer. Repay from the refinance, the sale, or the rents, and borrow again for the next one.
Good deals don’t wait for underwriting.
Sellers want certainty this week. A conventional loan wants an appraisal, a credit review, and weeks to close, and the cash for the down payment or renovation has to be in place before you can move.
A policy built for real estate gives you a reserve you can borrow against for the down payment or renovation. The insurer makes the loan and charges interest, paid to the insurer at the rate the contract sets. Mortgages and HELOCs still have their place: they can fund larger amounts, and their rates may be lower. Many investors use both, and reach for the policy loan when speed matters.
What deal financing usually involves
- Appraisals and approval timelines that can lose a competitive deal
- New underwriting on you and the property for each loan
- HELOCs the lender can reduce or freeze
- Bridge loans with higher rates and fees
Policy loans, at deal speed.
The mechanics are the same whichever policy you choose.
Down payments and bridges
Borrow against cash value to secure a property, fund a renovation, or close a gap between a purchase and a sale. The loan is a request to the insurer, with no credit check and no appraisal for the loan itself.
Treat the rate like any cost of capital
The insurer lends you its own money, holds your cash value as collateral, and charges interest, paid to the insurer. Weigh that rate against the deal’s numbers, the same way you would a bridge loan.
Repay and redeploy
There’s no required repayment schedule. Repay from a refinance, a sale, or cash flow, and what you can borrow restores for the next deal. Unpaid loans and interest reduce the death benefit.
Two ways to build your deal capital.
Both policies build cash value you can borrow against. They grow differently, and that changes how a loan plays out.
| Participating whole life | Indexed Universal Life | |
|---|---|---|
| Premium | Fixed; due every year of the premium-paying period | Flexible within limits; paying too little can cause a lapse |
| Cash value growth | Guaranteed schedule, plus dividends (not guaranteed) | Index credits within a cap and a 0% floor, minus policy charges; cash value can decline |
| While a loan is out | Depends on the carrier: with non-direct recognition the dividend is figured the same; with direct recognition it’s adjusted, up or down, on the borrowed portion. Loan interest accrues either way | In many designs, the full account value keeps earning index credits while loan interest accrues; the spread can be positive or negative |
| Suits an investor who | Borrows and repays often and wants predictable values | Has a long horizon and wants flexible funding, with more year-to-year variation |
| Framework | Banking Action Plan | Designed in your strategy session |
Dividends aren’t guaranteed, and the insurer sets them each year, but many participating carriers have paid dividends every year for decades. IUL caps (upper limits on index credits) and other non-guaranteed elements can change within contract limits. See the full comparison.
Build, deploy, recycle.
Build your capital base
Fund the policy at a level you can keep up every year and let cash value build.
Borrow when the deal appears
Request a policy loan for the down payment, renovation budget, or bridge. Funds usually arrive within a few business days.
Recycle the capital
Repay from the refinance, the sale, or the rents. What you can borrow restores, ready for the next deal.
Questions we hear about real estate.
Can I buy a whole property with policy loans?
With enough cash value and a smaller deal, it’s possible. More often the policy funds down payments, renovations, and bridge gaps while a mortgage carries the rest.
How is a policy loan different from a HELOC?
A HELOC can offer a larger line and sometimes a lower rate, but it’s tied to your home and the lender can reduce or freeze it. A policy loan needs no credit check or loan application, and what you can borrow depends on your cash value. Both charge interest. Many investors keep both and use whichever fits the deal.
What happens to my cash value while a loan is out?
Your cash value stays in the policy as collateral. On whole life, how the dividend responds depends on the carrier’s method, and dividends aren’t guaranteed. On IUL, in many designs the full account value keeps earning index credits while loan interest accrues, so the net result depends on the spread: positive in strong years, negative in a 0% year. We walk through it before you borrow.
What if a deal takes longer to pay off than planned?
There’s no required repayment schedule. Unpaid interest is added to the loan, and any balance outstanding is subtracted from the death benefit. If the loan grows larger than the cash value, the policy can lapse, and the gain can become taxable. We help you plan a repayment source for each loan.
Are policy loans taxable?
Under current tax law, a policy loan is generally not taxable income while the policy stays in force and is not a modified endowment contract (MEC). We design the funding to stay within the federal limits that keep a policy from becoming a MEC.