Premium Finance Life Insurance

The highest likelihood for abuse, the highest consequences when poorly designed, but incredibly effective when set up properly.

What Is Premium Finance Life?

Leverage is a powerful thing. Fortunately, the same leverage you may have encountered in physics also applies to money. You undoubtedly use leverage in your daily life.

Credit cards, car loans, and mortgages are all aspects of leveraging a bank’s money for purchases instead of using your own cash.

The same thing can be accomplished with life insurance. We have relationships with banks looking to loan high net worth individuals money (at very low rates) for the purposes of purchasing life insurance. Done right, this can be a win win.

The bank gets to loan against one of the most stable asset classes in the world (life insurance) and you get to take advantage of serious leverage to build wealth. But it’s not without its risks.

The biggest risks you will deal with in a premium finance life policy are as follows:

Interest rate risk, Policy Performance Risk, Policy Design Risk, Liquidity Risk, and Collateral Risk.

If these risks have been unexplained or avoided by your current advisor, you should give us a call.

The Problem

This product can come with high commissions - therefore it attracts some of the worst possible advisors looking to maximize their income. With bad advisors comes bad advice - and the consequences of this bad advice can be very very painful.

The Solution

For the people in the right situation, Premium financed life insurance is a long term wealth building strategy that takes advantage of low interest rate loans from a bank to purchase cash building life insurance policies. If you are a high net worth individual with liquid collateral this strategy could be a great supplement to your long term portfolio.


Who Qualifies For Premium Finance?

  • Total Net Worth over $5M
  • Liquid Net Worth over $1M
  • Under the age of 65
  • Healthy
  • Comfortable with Leverage
  • Looking to build tax efficient Cash Value or Has an Estate Tax Issue

Learn More - Premium Finance YouTube Videos

List of Steps

1

Ask Yourself: Am I a Good Fit?

Bottomline - Premium Financed Life Insurance is not a good fit for everyone. Review the list above and determine if this is a product your should explore.

2

Book a Discovery Call

We would stack our Premium Finance team up against any other firm in the country. Take 45 minutes to discuss your situation with our team.

3

Options are Presented

We will present back 2-3 options covering various premium amounts to ensure you see there is flexibility, and to ensure you get the product that is right for you.

Book a Discovery Call

Start our Premium Finance meeting process below:

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