(800)484-3227
Premium Financed Life Insurance
Our How, What and Why
Background: Our Partner Company has been the leader in the Premium Financing industry for over 19 years. Our lending platform designs have executed over 1,500 transactions totaling over $8 billion in first year loans, without any client writing a single premium check!
How We Do It: Through a special relationship with major Banking Institutions and top-rated Insurance Carriers, our Partner Company has created a one-of-a-kind recruiting and retention strategy to Attract and Retain top talent, from universities, non-profits, top tier C-level execs, to your middle-management workers on the front lines.
What We Do: We can assist you with financing your and your key team members' retirement with tax-free income for life with little to no money out-of-pocket, and, at the same time, may provide your company with millions of dollars in future tax-free revenue.
Why We Do It: To provide hard-working Americans with peace of mind and financial security in retirement, and give employers a significant edge against the competition in Recruiting and Retaining the best people in their industry.
Our list of industries and clients we serve is long, and some very well-known, and although we never discuss a firm by name, they include:
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Universities
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Publishing Companies
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Real Estate Investors
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Doctors and Dentists
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Attorneys (working with the largest law firm in the U.S.)
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Entrepreneurs / Franchise Owners
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Entertainers, Athletes, College Coaches
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Non-Profit Organizations
How Does It Work?
Premium Financing is a strategy whereby a qualified borrower accesses third-party financing to pay for large life insurance premiums. The insurance companies have constructed specific products for these financed plans to minimize outside collateral needs and maximize returns. This allows individuals and businesses to leverage current assets, maximizing returns via a predetermined cash flow.
Although every premium financing strategy is custom-made, every strategy follows a similar path:
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The process begins by determining insurance coverage needs and financial suitability.
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A preliminary case design is developed and discussed.
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Many variations of the design are run until the ideal plan is selected by the client.
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Formal insurance carrier underwriting and bank financing applications begin.
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The policy is issued by the insurance carrier. (The financing bank requires the owner of the policy be an Irrevocable Life Insurance Trust (ILIT) or an LLC.)
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The client provides collateral to the bank in the years when the loan balance is greater than the cash value inside the policy (typically 8-12 years if the insured is under age 60). The shortfall collateral consists of cash, cash equivalents or a Letter of Credit.
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When approved, the bank wires the premium payment to the life insurance company.
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Annual reviews are conducted to evaluate insurance policy performance and ensure successful renewals.
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Once the policy generates cash value above the bank's loan balance, the owner can request tax-free withdrawals based on the excess cash value inside the policy. These withdrawals (i.e. loans) by the owner will be repaid with the death benefit payout.
Premium Financing opens the door
to other financial solutions:
- Key Person Policies
- Employee Recruitment & Retention
- Buy/Sell Agreements
- Debt Protection/Reduction
- Tax-Free Replacement Income
- Charitable Giving
(Contributions to Non-Profits, Churches and Universities
with no money out of pocket for the donor)
- Estate Planning
