Advance Planning

Premium financing is taking a loan from a financial institution to finance insurance premiums. Typically this is for a high net worth individual that needs life insurance for a personal or business reason. This can include estate liquidity, family protection or business continuation planning. The individual finances the insurance for a numbers of reasons. First, they may not have the liquidity to pay a sizable insurance premium. Second, they believe they can get a greater return on insurance death benefit by financing premiums as opposed to paying them. Third, the client can invest the amount of premiums that would be due and get a higher return than the loan interest they are paying. Finally, the client has the premiums loaned to his trust to finance payment which avoids the gift taxes associated with paying premiums out of pocket.

Each Premium Finance Case, must be evaluated by our advanced planning team, please take a look on the varies finance programs available, Download Fact Finder and the Design Request Form, Complete it with your client or prospect, Submit it to our Advanced Planning Team, And we will prepare the necessary Illustrations, Pre Underwriting and initial case design.