Premium financing is designed for HNW individuals (such as closely-held business and commercial real estate owners).
This arrangement is widely accepted by life insurance companies and is utilized by consumers with a minimum net worth (generally at least $2 million) who have a need for insurance and prefer to retain their capital rather than liquidate assets to pay the premiums.
Insurance companies have developed specific products for those who want to finance their policies, minimizing the need for outside collateral while maximizing returns.
While your financial strategy may require you to purchase a large amount of life insurance, you may have some reservations about paying your premium dollars using your existing assets or current cash flow.
You may believe you can earn more on your money than you would pay in loan interest fees. You may have illiquid assets, such as stocks, bonds, real estate or business assets, that you prefer not to access in order to fund your life insurance purchase or preserve your cash for other purposes.
Premium financing is an innovative financial strategy designed to help individuals buy large amounts of life insurance for personal or business purposes, while leaving cash or other assets in place — or available to be used in other ways.
This strategy can be used for estate funding, philanthropic, or business planning purposes.
Call us today to discuss strategy options.