PREMIUM FINANCING CONCEPT
Premium Financing is the lending of funds to a person to cover the cost of insurance premiums. These loans are typically provided by banks or other third-party financing companies. It allows high net worth individuals the unique opportunity to collateralize assets to finance the insurance premiums as opposed to paying them with after-tax dollars from their cash flow.
PREMIUM FINANCING CONTENT:
People purchase life insurance for a multitude of reasons; to protect their loved ones and businesses, create liquid capital to pay estate taxes, leverage multi-generational wealth, or create an additional source of tax-favored retirement income.
Wealthy people do not necessarily dislike life insurance, they simply dislike paying premiums on the policies with out of pocket cash, since they believe they can do better with those dollars invested elsewhere.
Premium Financing allows an individual to collateralize the payment of life insurance premiums as opposed to capitalizing the same from their cash flow. By posting assets as collateral in order to procure a loan to pay the premiums, the individual is capable of leveraging the payment of the life insurance premiums using, as they say, “Other People’s Money (OPM)” (banks, etc),so they can retain dollars that would normally be spent for the coverage to invest elsewhere and create additional multi-generational wealth.
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You will learn how to utilize "other people's" money to pay for your client's premium. We break down the different strategies we use. We also include three case studies to show you the benefit of Premium Financing for your high net-worth clients.