Ofner Insurance

What is an IRP?

I’ve spoken about this before, but wanted to go into a little more depth.

What is an IRP?

It is a strategy. It stands for “Insured Retirement Plan.” Some people call it other things. For example, an IRS, (Insured Retirement Strategy.)

It basically uses Whole Life insurance or Universal Life insurance and using a strategy, create a retirement income while at the same time being insured.

Here is how it works. (And this, I admit, is straight out of my book.) Get it here!

An Insured Retirement Plan is a strategy that uses a purchased policy with either a Universal Life or Whole Life Insurance policy. This policy projects to have cash values at some time in the future to which the policyholder can borrow against. The concept is to basically leverage an insurance policy and borrow against the accumulated cash value sometime in retirement with a collateral loan where the policy becomes security for the collateral loan. The earnings placed in the insurance policy, the investment portion of the policy, are considered non-taxable as they remain part of the insurance policy and are not withdrawn. The loan with another institution is secured with the cash value.

With the Universal Life or Whole Life Insurance policy, you are able to leave cash on your account and use it later without triggering a taxable event. You achieve this by taking out a collateral loan that uses the money from your insurance investment as its security so that while it remains untouched in case of emergency situations such as car accidents or hospitalization for long-term care. They say that death, taxes and loan payments are the only inevitable things in life. But there is a way around these unavoidable events: Insurance. A collateral loan can be taken out against an individual’s policy for peace of mind to cover any unforeseen expenses without having to worry about how your family will manage if you die unexpectedly or if you become disabled due to an illness. This type of strategy allows your family to be able to both pay back your debts, if you pass, as well as support yourself financially after retirement.

I’ve even known people that use this cash value in their policy as their own personal bank. What a concept! Why pay the bank interest, when you can borrow your own money and pay yourself interest. Some call this the “Infinite Banking System,” because you can keep borrowing from your own bank and as long as you pay yourself back, with some interest, the cash value will continue to grow and grow and grow!!!

That’s an IRP.

Book a free consultation here with me and I can show you how to become your own personal bank!