Premium financing allows high net-worth clients and businesses to acquire much needed life insurance without liquidating investments or impacting their cash flow. When properly structured, insurance products can assist in transferring assets to family and charities with the potentially reduced expense of current gift tax and eventual estate tax.

 

There is a universal truth that people do not object to owning life insurance, they simply object to paying for it using current income and other assets. This adage is true even for ultra-high net worth individuals.  In fact, high net worth clients many times face challenges in paying insurance premiums.  Gift and estate-tax regulations can add complexity to the purchase of life insurance.   Individuals with these needs and concerns are usually open to alternative premium funding solutions.

 

The financing of policy premiums can allow clients to purchase much needed life coverage, with the potential for eventual tax advantages, without impacting their current finances and current cash-flows.  Premium financing offers optimal flexibility to clients related to the funding of their life insurance premiums.  

 

Traditional premium finance is a proven solution that has been available for nearly half a century.  The strategy is compliant and has been approved by almost all major A – rated life insurance carriers.    Premium finance allows qualified clients to borrow funds to pay life insurance premiums on a long-term basis.   The client can borrower all of the funds needed to pay the premiums associated with their life policy. 

 

The financed life insurance can help protect the client’s estate and wealth, while assisting them in passing on their financial legacy to future generations.    A premium finance solution allows for high net-worth clients to meet their life insurance needs with a flexible and affordable solution for payment.