Life Insurance has been around since the 1500's. It has been leveraged by wealthy people, business owners, investors, and property owners. They have been using life insurance as a tool to protect themselves, and secure their wealth, for future generations for centuries.
So, as Buy-And-Hold real estate investors, how do you use this tool, affordably, like the wealthy do, to pass on a legacy for your future generations?
13 Life Insurance Question & Answers That Buy-And-Hold Real Estate Investors Ask To Create And Secure Wealth
Q1: Unless there was money set aside, without cutting into profits, would it be uncomfortable for your business, or family, to come up with funds to pay off your mortgage?
A: Completely Cover The Loan Amount.
The first way is pretty obvious. This is a popular idea in consumer mortgage protection insurance. Use the life insurance face amount to pay off the remaining balance of your loan, and own the property outright. But in business rental properties …
Q2: If you had an opportunity to guarantee, and lock-in, profits on your investment, and eliminate your risk exposure, could this be of value to you?
A: Insure At Current Property Value
Buy-and-Hold investing is a business. Successful business has profits. In real estate investing, money is generated by rental income, asset appreciation, or home improvements, to increase the value of the home.
The objective of these benefits, since real estate investing is a business, and has its risk, is to insure for the value of the property to guarantee your loan and your profits are accounted for. This benefit completely eliminates risk exposure, and ensures your business can still scale, and grow, in the event of injury, illness, disability, or unexpected death.
Q3: Would your business, or family, benefit from regular rental income from your properties?
A: Get Lifetime Rental Income Replacement Coverage
As a Buy-and-Hold investor, as part of your business, one of your primary income sources is rent from tenants. Since this is your business, in our report, a lifetime value is assessed, so that you, your business, or your family, will receive the full value of your investment.
Q4: If additional resources weren’t set aside, would it be easy for your business, or family, to manage your properties?
A: Get Lifetime Property Management Coverage
Property management is a regular fixture of property ownership. In the event of you not being available to manage your property due to serious injury, illness, disability or death, a value is assessed to keep your business afloat, and headed in the right direction.
Q5: Without set-aside-resources, would it be an inconvenience on your family, or business, to pay your property taxes?
A: Acquire Lifetime Property Tax Coverage
If you own property in America, there is most likely a tax evolved. As an investor, and business owner, this tax is assessed in the report so that resources are available to cover this expense.
Q6: If additional resources weren’t set aside, would it be easy for your business, or family, to manage your properties?
A: Obtain Lifetime Annual Maintenance Coverage
In Buy-and-Hold real estate ownership, wear and tear happens. It is expected. So, we plan for, and account for, it in our property life insurance valuation report, so that it is covered in the event of serious injury, illness, disability, or death.
Q7: If you were compromised, weren’t in good health, or passed away, would your business, or family, be able to function and run your operation seamlessly, as if you were there?
A: Get Lifetime Business Operations Coverage
All businesses have overhead and expenses. The right life insurance plan can be used to offset, and cover, these expenses in the event of serious injury, illness, disability, or death. In the assessment report, this is considered, and set aside for your business, so there are no surprises.
Q8: What backup plan do I have in place to protect myself, and my business, from serious illness?
A: Get Income Replacement Against Serious Illness
With the right kind of insurance tool you can receive a lump sum of money, tax free, as a benefit to help you face this challenge.
Q9: If I were to become disabled in some way, what do I have in place for my business, and family, to generate regular monthly income that doesn’t require me to offload assets?
A: Obtain Income Replacement Against Disability
With the appropriate insurance tool, monthly income distributions can be given to you in the event of short term, or long term, disability as you overcome this hurdle.
Q10: In the event of death, do I have the proper life insurance plan in place to protect my properties, my business, and my family with no exposures?
A: Get Income Replacement Against Death
In the event of unexpected death, a tax free benefit payment can be issued to your business, your family, or a beneficiary of your choice.
Q11: If your family was left with the debts, and the expenses, associated with your business, would they feel safe, and secure, in managing them?
A: Secure Your Business Against Loss
In the event of serious injury, illness, disability, or death, your business, family, or estate, will receive necessary funds to stabilize your business.
Q12: If your family was left with your assets, overhead, and properties right now, would they have all of the resources necessary to maintain the lifestyle that you created for them, without selling off their wealth?
A: Secure Your Family Against Loss
In the case of injury, illness, disability, or death, you personally, or your family, can receive a financial benefit as you, or they, get back on their feet.
Q13: If your family had to liquidate assets, to cover business expenses, taxes, or property maintenance, could this be damaging to the legacy that you want to leave behind for your family?
A: Acquire Coverage to Leave A Legacy
When all of these above situations are planned for, and considered, your business, and your family, will be left off with free-and-clear assets, resources to purchase new property, and keep regular tenant income. Also, business operations, lifetime property maintenance, and taxes will all be accounted for. A legacy for the next generation will be established, and they will be in a prime situation to scale, and grow.
If you found this information beneficial as a real estate investor, and want to learn more, check out our free webinar, and receive a free Property Life Insurance Valuation Assessment Report (see sample - "PLIVA" Report"). One of our professional licensed agents will be happy to assist you with this.
You can also call 800.811.4027 or email us at admin@reiinsurancegroup.com.
Happy Investing!
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