High end Premium Finance cases for high net worth individuals

Premium Financing

Overview

Life Strategies™ is unique in that it is designed to provide large amounts of permanent, premium financed life insurance for high net worth individuals and their trusts (minimum net worth $10 million) with a high probability there will be no out-of-pocket cost to the policy owner. Financing is provided by four of the world’s largest international banks who have synchronized their loans to work with specially designed insurance policies from top rated insurance carriers. The life insurance policy is aggressively funded to build immediate and rapid-growth cash value which is used in part to satisfy the collateral requirements for the loan. Although some independent collateral is required to initiate the loan process for the early policy years, eventually the cash value becomes the sole source of collateral for the loan and then assigned collateral is released.

Cash value growth is enhanced by a special indexing component in the policy and is calculated to do three things: 1) ultimately provide all of the collateral needed for the loan, 2) increase the death benefit by at least the accrued loan balance each year, and 3) provide a value large enough to retire the loan balance in full. All plans have a loan exit strategy, taking place either during the insured’s lifetime or automatically at the insured’s death. The loan repayment is not dependent on cash value performance. Unlike most other competitor programs, the policy only has to be in force for the loan to be paid off.

Life Strategies™ is designed for use with estate, charitable, business planning (buy-sell, key man, incentive packages) and trust revitalization.

Client profile

Ages 20-70

Minimum net worth of $10 million

Minimum loan amount of $5 million (includes accrued interest)

Medical underwriting works best at Standard or Preferred

Maximum death benefit limited only by industry tolerances – currently about $125 million

This program is creative, cutting-edge advanced life insurance design with risk reducing techniques embedded in its structure.