Why Real Estate Investors Need Infinite Banking Policies


Income properties and real estate are a very attractive source of income and wealth creation in many retirement plans. Countless Canadians intend to rely on the income and appreciation in a significant form in retirement.

However, we are well aware that things don’t always go as plan and we use Infinite Banking policies as a way to help client grow their real estate holdings, AND significantly reduce risk within their financial plans.

What can possibly go wrong with real estate? Well. A lot over a 20-to-30-year retirement period.

  1. You are almost guaranteed to own real estate during a major market pull back when you invest through a 20-to-30-year retirement period. If your plan was to sell or refinance a property at a certain point to fund a few years of income, you may be forced to sell at a really bad time if you’re without a back up plan.
  2. What if tax rates or capital gains tax rates increase significantly, seriously lowering your after-tax profit?
  3. The death, job loss or retirement of a mortgage qualifier can easily reduce or limit your ability to pull equity out through a refinance.
  4. Similarly a change in refinance rules, eg) moving from a minimum equity of 35% from 20%, can really affect your plan to access the capital without having to sell.
  5. It is often said that having a non-paying tenant and going through an eviction process is a matter of when, not if. The process typically takes over a year with no hope of recovering the income and legal fee loss.


When you depend on this income in retirement, would it make sense to have a back up plan?


So, What’s The Solution?

The solution is to protect your assets. That is, the source of your retirement income. And wealth insurance is the perfect answer to this problem. In retirement, cash values within the insurance policy can provide several years of tax-advantaged income.

You will be in retirement, if all goes well, for 20 to 30 years. There will be problems. It’s comforting to know you have a safe and secure source of tax-advantaged income that you can access to wait out the storm. With Infinite Banking policies you are not forced to sell assets at a bad time to provide your required income.

In fact, it gets even better. You can access the cash values much earlier than retirement to continue to grow your real estate portfolio during your wealth building years. Many of our clients have purchased properties by accessing the cash values in their policies for down payments.


Additional Benefits of Cash Value Insurance

The obvious one is you have the insurance coverage that you want, and need should you die prematurely.

But wealth insurance also protects you if you live an exceptionally long life, as the tax-advantaged growth grows exponentially over time. Having the insurance policy allows you to create an income from other assets knowing the value is replaced in the later years of the policy.


Contact an Authorized IBC Practitioner today to learn how to build a better wealth plan with an Infinite Banking insurance policy.

Picture of Kathleen van den Berg

Kathleen van den Berg

Kathleen specializes in using permanent cash value whole life insurance to create significantly greater wealth in retirement, but also allowing for policies to create an infinite banking resource to be used in a client’s wealth-building years for opportunities such as income properties, stock trading, private mortgages, and other opportunities.

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