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 DiagramsHow Is Our Premium Finance Company Different Than Others In The Market Place?
Premium financing has long been an established estate planning tool. Until recently however, most finance programs required the client to post full collaterals and often to guarantee the loan amount. Our life insurance premium financing model allows the policy owner to borrow against the projected future market value of the underlying policy as a fully non recourse loan that does not require any personal guarantees. Our structure is superior to other non recourse premium arrangements. Unlike other programs, in the case where the client wishes to resell his policy we do not compel him to settle his policy with any particular settlement company. In addition, our structure offers unique renewable loan terms while other programs generally finance only the first 2 years of premiums.
The Benefits Of Using Our Life Insurance Premium Finance Company
Customer Service
Our professional, trained company representatives will help you along, every step of the way, from setting up a custom program for your specific needs to working out the details with your accountant and lawyer. You can count on us to be there!
CollateralsMost premium finance companies will only allow the use of limited collaterals, often not allowing the use of real estate. Our company is very flexible regarding the type of collateral to be posted. Acceptable collateral includes cash, securities, real estate (commercial or residential), or a letter of credit. While most companies demand 100% collateral coverage before they will give the loan, our company only asks for a small percentage of the loan to be covered by a collateral. Sometimes the required collateral is as low as 25% depending on the situation. In addition unlike other companies we do not require a personal guarantee on the loan.
The Loan
Our company offers extremely low and competitive interest rates. While other companies offer the Interest rate of approximately LIBOR +2, we offer the lower rate of of PRIME+1. We do not take part in any death benefits other then repayment of the loan and interest. The remaining money goes directly to the beneficiaries. In addition, unlike other companies, we offer easy loan renewability to insure that a client does not get stuck in a useless program. There are no prepayment penalties on the loan.
Conclusion Optionss
At the conclusion of the loan, the client can continue the program using our unique loan renewal options. He can keep the policy until its maturity as a death benefit, handing over a sizeable amount of money to his inheritors. If the client chooses to terminate the policy he has three options. He can either repay the loan and interest with no additional penalties. He can forfeit the policy to our company and not have to pay anything.
Regulation
We do not use private investors to fund the loan. All our loans are made by a regulated, publicly traded, state chartered bank that is a member of the FDIC.
Qualification
Using our premium finance company, an individual only has to have a net worth of $4 million as opposed to other companies that require at least $5 million. In addition we generally allow more flexibility regarding the state of health of the insured.Availability
Our premium finance company is willing to work with individuals in all 50 states as well as large corporations, trusts, small businesses, and organizations. Our program is compatible with many insurance carriers.
If you have any questions about the program please feel free to email us.
