PremFinance.com - Life Insurance Financing For High Net Worth Individuals
About Life Insurance Premium Financing Program
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Case Study #1
Richard Rafelov
72 year old male
non-smokingRichard Rafelov, a well to do businessman, in his early seventies needed the knowledge that his family would be cared for after his demise. After analyzing his situation our experienced agents realized that he was eligible for $65,000,000 in life insurance coverage. With annual premiums equaling 1,950,000 a year, Richard would have had to sell a number of properties and liquidate some of his high yielding stocks.
Using our Life Insurance Premium Financing Program, Richard was able to gain the coverage he needed without laying out any money. Richard also had the peace of mind knowing that he was not placing any personal guarantee on the loan. When Richard passed away 11 years later the loan principal was $36,135,776 with accrued interest of $3,613,578 when deducted from the $65 million death benefit, Richards family received the tax free amount of $ 25,250,647. Had Richard passed away earlier his family would have received a larger amount. Should Richard's insurance needs have changed any time during this period he also could have used one of the exit strategies which would have allowed full repayment of loan principal and interest, and may have provided him a net gain as well.
In essence Richard provided the significant, tax free amount of $25 million to his heirs without having to lay out any money or assume personal responsibility for the loan.
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