Who Benefits in Investor-Originated Life Insurance (IOLI)?

Shawn Plummer

CEO, The Annuity Expert

When an individual purchases life insurance, they typically do so to provide financial security for their loved ones in the event of their death. But what happens when the life insurance policy is sold to an investor? Who benefits from this type of transaction? Let’s take a closer look at investor-originated life insurance and find out.

What Is Investor-Originated Life Insurance?

Investor-originated life insurance, or IOLI for short, is a unique type of life insurance designed to generate long-term investment returns for the policyholder. Typically, investors purchase whole or universal life policies from a life insurance company and then take out loans against the cash value to fund other investment opportunities.

In many cases, the investor’s initial investment will grow faster than the loan interest, resulting in higher overall returns over time. And because such investments are backed by the strength and guarantees of an established insurance company, they are typically considered to be low-risk and low-maintenance.

Overall, investor-originated life insurance is an innovative way for investors to secure safe, steady returns while maintaining complete control over their wealth.

The Benefits Of Investor-Originated Life Insurance

Investing in life insurance is a great way to build wealth and protect your financial future. By purchasing an Investor-Originated Life Insurance policy, or IOLI, you gain the opportunity to earn substantial returns while also enjoying protection against life’s uncertainties. This type of insurance offers a variety of benefits, including guaranteed renewable coverage that can last a lifetime, the ability to use cash value built up over time as collateral for loans, tax-deferred growth on your investment, and a death benefit that is free from probate.

Additionally, IOLIs are typically less expensive than other insurance policies due to their unique structure. Thus, if you’re looking for an innovative and effective way to safeguard your assets and your family’s future, investing in an IOLI could be a perfect choice.

Who Benefits from Investor-Originated Life Insurance (IOLO)? 

The policy owner (investor) benefits upon the death of the insured. The death benefit is paid to the policy owner, who can use it as they see fit. The policy’s beneficiaries are not affected by the sale of the policy to an investor.

How To Get Investor-Originated Life Insurance

Who Benefits In Investor-Originated Life Insurance (Iolo)?

If you’re interested in purchasing an IOLI, the best way to get started is to speak with an experienced life insurance agent. They can help you understand the ins and outs of this type of insurance and determine whether it’s right for you. Investor-originated life insurance is a great way to build wealth and secure your financial future. So if you’re looking for an investment that offers potential returns and peace of mind, IOLI could be the perfect solution.

Contact us for a quote on IOLI today!

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Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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