The Untapped Financial Strategy That Helped Two Business Partners Scale Their Company & Invest in Real Estate.

Mark and Jason had built a thriving construction business over the past decade. Revenue was strong, and profits were growing, but they faced a challenge that many business owners encounter: What’s the smartest way to use retained earnings without triggering unnecessary taxes?

They were hesitant about making a move. They knew they wanted to expand, maybe even invest in real estate, but they weren’t sure how to fund it without taking on unnecessary financial risk.

That’s when they decided to meet with one of our advisors. The advisor went through an in-depth look into how the business was structured and where the opportunities for further growth lay.  The final outcome was to open a corporate-owned whole life policy for each of the partners in order to maximize the ability to use retained earnings for tax-advantaged growth.

The Corporate-Owned Universal Life Insurance Strategy offers that.

Instead of letting excess capital sit idle in taxable accounts, Mark and Jason learned how to redirect it into a corporate-owned universal life (UL) policy. Here’s how it worked for them: Tax-Advantaged Growth – Their money grew within the policy, protected from taxation, allowing them to build a financial reserve without penalties. Access to Capital Without Selling Assets – By using their policy’s cash value as collateral for a loan, along with using direct policy loans, they secured business funding without liquidating investments or taking on high-interest debt.

Expansion & Real Estate Investment – This strategy enabled them to bid on more projects confidently and even acquire commercial properties—without using personal savings or giving up equity in their company.

Why This Strategy Is Often Overlooked?

The truth is, most business owners never hear about this strategy because traditional financial planning doesn't have these advanced strategies. It’s not just about protection—it’s a financial tool that can help fund business growth, reduce taxes, and create long-term wealth. This and our other Risk Management Strategies inside our Whole Life Financial Map, to cover any debt and buy-sell agreements, they were able to grow and expand knowing if the worst case did happen the company and their families had them all taken care of. This let them focus on Business and Business is good!