Life Insurance Premium Financing - Business Planning   

Premium Financing for Group and Business Life Insurance Policies

There are a number of reasons why a company would chose to provide life insurance to their employees. In all cases the premiums can be quite expensive and can dig into the company's open resources. Financing the life insurance premiums will let you achieve your goals and at the same time leave your money free to be invested in places where it can grow. We are ready and willing to work with large corporations, trusts, small businesses, and organizations.

Reasons Businesses Purchase High Face Value Life Insurance Policies

Key Person Insurance Funding

Many businesses have one or more crucial employee that is necessary for the continual flow of day-to-day activities. In the tragic occurrence of their demise, the company would be left with a large hole in its structure. Expenses needed to find, replace and train a new employee as well as business lost due to the interruption can often add up to a sizeable amount of money. If this key employee was involved in securing finances for the company or had important clients, than additional losses can be expected. Purchasing Key Person Insurance is a solution that will cover the long-term problem and at the same time will not cut into the companies assets to pay the expensive life insurance premiums. Through the use of our Life Insurance Premium Financing Program a company can achieve the security needed without having to give up profitable investments.   Read more

Supplemental Executive Retirement Planning (SERP)

Often business owners will promise their leading employees a Supplemental Executive Retirement Plan (SERP's). This will allow them to retire with higher compensation. In most cases a life insurance policy is taken out for each executive, with funds being borrowed against the eventual death benefit. Funds from these loans are given to the retired executives with the company eventually being compensated from the death benefit. Through the use of our Life Insurance Premium Financing Program, the premiums can be funded allowing a company to provide SERP benefits to its employees without tying up assets.   Read more

Cost Efficient Buy/Sell Funding

Many times partnerships will draw up a buy / sell agreement. In the case where one of the partners passes away, the remaining partners have the ability to purchase his share of the company. This guarantees the remaining partners that they will not have to deal with a new owner in the company. Were such a scenario to occur, the remaining partners would have to come up with a large amount of money to buy off the deceased shares. Purchasing a life insurance policy on each owner insures the remaining partners that they will have the money available at the time of his death. Using our Life Insurance Premium Finance Program will allow the company to purchase the policies without having to liquefy their assets to pay the expensive premiums. Read more

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If you have any questions about the program please feel free to email us.