Premium Financing

When an estate plan calls for a significant death benefit amount, financing the premiums can be a smart strategy.

Work Smarter

Use leverage to pay for insurance.

Like other successful individuals, life insurance may play a key role in your plan for protecting your loved ones and/or businesses. While you have the assets to afford the premiums, those assets may be ‘out of reach’; for example, real estate, highly appreciating stock, or the family business.

When an estate plan calls for a significant death benefit amount, financing the insurance premiums can be a smart strategy for a few reasons:

You may not want to liquidate profitable or illiquid assets to pay for insurance premiums.
Your current cash flow may already be earmarked for other uses.
Loans to your Irrevocable Life Insurance Trust are not subject to gift taxes – allowing you to fund the policy while still using the gift tax exemption for other purposes.
Financing permits you to purchase a larger life insurance policy at a lower out of pocket cost to you.

Premium financing allows you to pay the premiums on a life insurance policy - which is usually held in an Irrevocable Life Insurance Trust - by borrowing money from a third-party commercial lender. Often, the policy can be posted as collateral. Once it is set up, we provide ongoing monitoring to mitigate any potential risks until the loan is repaid.