Premium Financing

Premium Financing is a cost-effective alternative to the traditional method of purchasing a life insurance policy. It is a method which allows high net worth individuals (or accredited investors) to use their assets as collateral for a loan to fund a life insurance policy. It can be set up for a specific period of time, or as part of a greater Estate Planning Strategy.

Possible Candidates:
  • People with large estates, who wish to preserve their assets for future generations.
  • People with large insurance needs, often associated with Individual or Business Estate Tax Planning.
  • People who are reluctant to liquidate their high yielding assets to make premium payments.

Candidates should have a tangible net-worth Estate in excess of $5,000,000 and a highly liquid asset portfolio or other acceptable forms of collateral.

The RIGHT way to do Premium Financing:
  • Sold to high net worth consumers who need death benefit as a solution for federal estate taxes and wealth transference planning
  • Is fully transparent with everything disclosed to the life insurance company
  • There are no upfront payments,  as well as no investors or strangers involved in the program.
  • The lender has no ownership in the policy if the loan is paid off and will never participate on the settlement of the policy.
  • Legal opinions are issued by nationally recognized law firms for every loan made by the lender.
Requirements:
  • A recourse loan used to finance premiums
  • Personal guarantees from the borrowers
  • Additional collateral (in excess of the cash value of the policy)
  • Annual collateral reviews