Premium Financing
Do you need to purchase a large insurance policy, but your lack of liquidity or cash flow restrictions limit your ability to pay the required premiums? If you qualify financially, a loan program could be established to pay your premiums for you. You will have little or no out of pocket expense. The loan used to finance your premiums can be paid back from the death benefit proceeds of the life insurance policy. Your heirs will receive the net death benefit amount remaining - income tax free.
Example:
John Client (age 75) arranges to borrow $250,000 each year to purchase a $5,000,000 life insurance policy on himself. For this example, we will assume he dies in five years at age 80. The outstanding loan balance (including interest and fees) would be approximately $1,450,000. His heirs would receive $5,000,000 (income tax free) from the death benefit of the life insurance policy. They would then pay off the loan balance of $14,450,000 and keep $3,550,000 net for themselves. All accomplished with no money paid out of pocket.
Contact us for a complementary, no obligation assessment of your capability to qualify for financing of your life insurance premiums.
