Who is generally Eligible?
Premium Financing is a complex financial transaction and only clients comfortable with leverage, with access to skilled tax and legal advisors, should consider this concept. Our team will work alongside the client and their advisors throughout the implementation of this process. The general demographics for clients utilizing this strategy are as follows:
Has a need for Life Insurance
Has a Net-Worth of $ 5,000,000.00 or more
With certain carriers, for those under 50, the Net-Worth requirement is 2.5 million with a minimum annual income requirement. Contact us to learn more.
Has liquid assets sufficient to pledge as security for loan repayment (If additional collateral is required)
Meets life insurance carriers policy underwriting guidelines with favorable offer
Meets the lenders financial requirements for loaned funds
More About the Target Market
The Target Market for Premium Financing is comprised of less than 2% of the population. Premium Financing is often attractive to both high net-worth individuals and business owners who have a defined life insurance need. Premium Financing provides these individuals with the potential opportunity to have lower out-of-pocket costs in comparison to a traditional non-financed policy, while still procuring a death benefit or tax-advantaged supplemental retirement income. Some of the planning benefits include:
Family Protection
Estate Liquidity
Wealth Transfer
Charitable Planning
Key Employee / Deferred Compensation Agreements
Buy/Sell Partnership Agreements
Tax Favored Supplemental Retirement Income (Policies need to be structured properly by an expert that is competent in these arrangements.)