Life insurance should be an important part of your wealth strategy. But some life insurance strategies may also help build wealth with limited market risk, secure tax-free income for a worry-free retirement.
A Premium Finance strategy offers protection for your family and allows you to leverage creative funding strategies to provide important protection, while providing liquidity for other purposes.
Premium financing is similar to a line of credit. Our lenders specialize in lending money to you, after a thorough financial review, to pay premiums on a life insurance policy.
You pledge outside assets as collateral, make interest payments and the lender pays the premiums to the insurance company. As part of the customized exit strategy we help you develop, you will have the flexibility to repay the loan in several different ways.
Some clients do this through the accumulated cash value of the policy, liquidating outside assets or through the policy’s death benefit. During retirement, you can access the cash value of the policy for income or other needs.
After the death and the repayment of the loan, the remaining death benefit is passed to your heirs, potentially income and estate tax-free.
A Premium Finance strategy for life insurance can be a powerful way to help meet you meet your estate and wealth transfer goals. Like any tool, it needs to be well understood and used properly within the context of existing strategies with your tax attorney or CPA
Is Premium Financing Right For You?
Are you 45-65 years old
Have a net worth of $5 million-plus and earn at least $250k in annual income
Have a need for high-value permanent life insurance
Have estate or tax planning needs
Can meet medical and financial underwriting criteria
Have sufficient cash-equivalent assets to meet lender collateral requirements
Are comfortable with credit and using leverage to build wealth
Have outside investment opportunities you would like to pursue
Have cash committed to other needs
If this sounds like you, contact us to discuss your endless possibilities!