Premium Financing is a cost-effective alternative to the traditional method of purchasing a life insurance policy. It is a method which allows high net worth individuals (or accredited investors) to use their assets as collateral for a loan to fund a life insurance policy. It can be set up for a specific period of time, or as part of a greater Estate Planning Strategy.
Possible Candidates:
- People with large estates, who wish to preserve their assets for future generations.
- People with large insurance needs, often associated with Individual or Business Estate Tax Planning.
- People who are reluctant to liquidate their high yielding assets to make premium payments.
Candidates should have a tangible net-worth Estate in excess of $5,000,000 and a highly liquid asset portfolio or other acceptable forms of collateral. The RIGHT way to do Premium Financing: - Sold to high net worth consumers who need death benefit as a solution for federal estate taxes and wealth transference planning
- Is fully transparent with everything disclosed to the life insurance company
- There are no upfront payments, as well as no investors or strangers involved in the program.
- The lender has no ownership in the policy if the loan is paid off and will never participate on the settlement of the policy.
- Legal opinions are issued by nationally recognized law firms for every loan made by the lender.
Requirements: - A recourse loan used to finance premiums
- Personal guarantees from the borrowers
- Additional collateral (in excess of the cash value of the policy)
- Annual collateral reviews
A Powerpoint Presentation on Millionaire's Estate Insurance
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