Do you have high net worth clients that:

Want to DOUBLE their coverage without more money out of pocket?
Reduce their annual gift amount to pay for their trust owned policy?
Improve their rate of return on the life insurance policy?


Find out more about how Life Insurance Premium financing can enhance for your practice!

Premium Finance Benefits

There are a number of benefits to financing insurance premiums. These include:

  • Eliminates the requirement for a large up-front payment to an insurance company.

  • Multiple insurance policies can be attached to a single premium finance contract, allowing for a single payment plan to cover all insurance coverage.

  • Premium financing is often transparent to the individual or company insured. Brokers transmit the completed premium finance agreement to the premium finance lender, and the policy holder is billed for loan interest as they would be for any other typical insurance policy.

  • Allows for clients to obtain needed coverage without liquidating other assets.

  • The main benefit in premium financing is avoiding high cost in paying premiums out of pocket. By using other people's money (leveraging a lender's capital), clients can retain a significant amount of capital known as retained capital.

  • Typical client profile: Age 29 to 75; Net Worth $5MM or greater; Business-owner, entrepreneur, professional; Desire to retain capital whilst maximizing wealth transfer & potential tax-free retirement

  • With todays modern of indexed universal life policies and premium finance strategies estate, & asset protection can be achieved.

  • Properly structured premium financing may provide additional tax advantages and also may avoid gift taxes.