Premium Financing allows high net-worth individuals the ability to utilize loans from many of the world’s largest banks to pay for their insurance premiums. This process allows the client to purchase life insurance coverage to protect their family estate and for wealth transfer. When the loan program is used in conjunction with a selected life insurance product, you can be assured that they will receive the benefits from the product’s guarantees and have additional death benefit to repay the loan.
Clients with significant wealth are familiar with the benefits of using credit at the right times and for the right reasons to enhance their financial situation. In addition, premium financing allows the client to change non-performing assets, such as real estate or commercial property, into performing assets. By applying a loan to fund life insurance premiums, you will not be forced into the untimely liquidation of assets and world able to use your assets to reach other financial goals.
This is the theory behind life insurance premium financing. The client has a present need for life insurance protection, whether it’s estate planning, business succession planning, or part of a wealth accumulation strategy, but the client has sound financial/business reasons not to liquidate assets in order to fund the insurance need. By working closely with you and the banking institutions, we can help create a premium financing plan that will best suit your needs.