PremFinance.com - Life Insurance Financing For High Net Worth Individuals
About Life Insurance Premium Financing Program
Program Summery Why Use Us Comparison Chart Case Studies Program Diagrams
Life Insurance Premium Financing Program Advantages
•Allows high net worth seniors to obtain a significant amount of insurance with no out-of-pocket cost.
•Allows qualifying individuals to beaqueth on millions of dollars to their family at very low financial risk.
•Savvy policyholders avoid liquidating high yielding investments needed to pay premiums.
•Allows individuals a potential method in resolving their estate tax problems while avoiding gift taxes.
•Our financing bank allows qualified insureds to attain insurance policies with less collateral than traditional premium financing which require 100% collateral.
•The financing bank does not partake of any benefits from the policy beyond repayment of the total loan due.
The program
•We will provide financing for all premiums due on your policy.
•No personal guarantee is required and only minimal collateral plus the policy itself is posted for the loan.
•With the guidance of your attorney, a life insurance trust, or similar entity, will be drafted for the beneficiaries you designate. They will be named owner and beneficiary of the life insurance policy that will be financed.
•Receive the maximum coverage you qualify for without any premium payments.
•Should a client pass away while the loan is outstanding, the insurance will pay off the loan and any interest accrued. 100% of the net balance will be transferred to your loved ones.
•You can select from several loan term options. We offer flexible terms and interest rate options. We will assist you in reviewing all the plan documents and in structuring the life insurance policy to meet your personal and financial objectives.•The insured can obtain substantial coverage with no out-of-pocket cost, guarantee, or financial risk.
•The insured has the option of repaying the loan at anytime with no prepayment penalty.
• Upon loan maturity, the loan balance can be repaid in cash or in kind by tendering the insurance policy to the lender in full satisfaction of the
loan balance.Resolve your fears
People may be hesitant to utilize premium financing loans issued by unregulated private companies and hedge funds. They may have concerns about a private institution potentially owning a life insurance policy on their life. We can resolve your fears. The bank financing our loans is a publicly traded, state chartered bank and a member of the FDIC. The bank is subject to FDIC oversight and is committed to protecting your privacy to the greatest extent possible.
About the Bank
The Financing Bank is a publicly traded, state chartered bank and a member of the FDIC.
The Financing Bank has developed a new premium financing program which has been approved by various insurance carriers. The financing program offers borrowers competitive loan terms with highly reduced collateral requirements.
How We Compare With Traditional Companies
Traditional Premium Financing Loans
•Premium financing usually consists of an insured borrowing 100% of the
necessary collateral to pay insurance premiums.
•Interest is charged on these loans at a rate of approximately LIBOR +2.
•Loan terms usually range from 5-10 years.
•100% collateral is necessary for the loan to be secured.Our Premium Financing Loans
•Allows maximum collateral flexibility.
•Total collateral requirements may be as low as 25% (loan terms assessed case by case)
•Acceptable collateral includes cash, securities, real estate (commercial or residential), or a letter of credit.
•Issued with five year loan terms
•Interest rates of PRIME+1
Legal Elements
•Our program does not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority.
•Our program will not violate any applicable law or regulation or the charter, by-laws, trust agreement or other organizational documents of any of the owners that is not a natural person or any order of any Governmental Authority binding on any of the owners.
•Our program will not violate or result in a default under any indenture, agreement or other instrument binding upon any of the owners or their assets; to its operations or financial condition, or give rise to a right there under to require any payment to be made by any of the owners.
•Program will not result in the creation or imposition of any Lien on any asset of any of the owners other than pursuant to those within the contemplation of the Premium Finance Agreement.
If you have any questions about the program please feel free to email us.
