Life Insurance Premium Finance Benefits   

Life Insurance Premium Financing Program Benefits Benefits Summery     Leverage Your Assets     Estate Tax Exemption      Case Studies    Key Person Insurance Funding     SERP's Funding      Buy / Sell Funding

Life Insurance Premium Finance Benefits

Bequeath millions of dollars to your loved ones at very low financial risk with no out of pocket expenses and no personal guarantee.

For qualifying individuals our Premium Finance Program is an effective method to transfer millions of dollars to your family with no fees attached. Enrolling in the program has no risks other than living long enough for the interest to become greater then the death benefit or in the case of account termination, the usability of part of ones insurability line.

Attain life insurance while retaining your current investments

Although the benefits of having a high face life insurance policy can be great, liquefying your current assets to pay for the expensive premiums can impact your current growth and success. The power of life insurance finance eliminates ones need to sell stock holdings or place real estate properties on sale to cover the large premiums. One is able to retain current assets and investments and receive large life insurance coverage as well.

Premiums paid by others

In day to day business it is common practice to use other peoples money to achieve your financial objectives. Through the use of premium financing you can make use of other peoples money to achieve your estate planning goals and receive better protection for your family.

Reduce the amount of gift tax on your estate

While everyone has a strong love for their country, ones family still receives priority. Using premium financing, one can purchase a high face value life insurance policy. This will in turn drastically reduce and possibly eliminate the taxes on ones estate after death. As the government does not tax the death benefit of a life insurance policy, this strategy will let your inheritors receive a large amount of tax-free liquidity.

Use the power of leverage to achieve your financial goals

Use your dormant assets and performing investments as leverage to increase your financial goals. By placing your assets as a collateral, they can continue performing, bringing in higher returns then the interest charged on the loan.

High Face Value Life Insurance Benefits

Income replacement for your family

Families of well to do individuals are no doubt used to the comforts of an upper class life style. An unexpected death can place a large strain on the family finances, leaving your loved ones in a stressfully situation. Plan ahead and give your family the security they deserve. Using premium financing you can take out a very large life insurance policy that will leave your family with the comforts that they are accustomed to.

Testamentary Gifts to Charity

Making a charity the beneficiary of a life insurance policy is an excellent method to make a sizeable donation without an up front transfer of cash or securities. The donor can own the life insurance policy and make a charity the beneficiary. Proceeds payable to the charity at the death of the policy-holder qualify for an estate tax deduction. Through the use of premium financing the payments of the life insurance premiums can be offset as well.

Estate Planning Benefits

Leverage the Annual Gift

Giving a gift to an irrevocable life insurance trust fund is one of the few ways to bypass the expensive gift tax charged on a deceased estate. One of the benefits of life insurance premium financing is that the money that is being set aside as part of the life insurance fund will later be deducted from estate taxes.

Lower or Eliminate Estate Tax

Life insurance death benefits are one of the few areas of an estate that remain untaxed by the government. This leaves an opportunity for channeling untaxed liquidity to one's inheritors. Use our Life Insurance Premium Financing Program to help plan ahead for your friends and family. Give them your hard earned money without having a chunk bitten off.

Purchase more life insurance coverage

Larger death benefits are equivalent to more security and financial gain for your friends and family. Using our Life Insurance Premium Finance Program, your life insurance coverage is no longer limited by the amount of liquid assets you currently have. Using illiquid assets as a collateral to cover even a partial portion of the premium finance loan will allow an individual to purchase a life insurance policy with greatly increased coverage.

Business Planning

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.

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.

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.

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