Premium financing helps high net worth individuals continue to grow and protect wealth without hindering current investments. This tool can be used to enhance the borrower’s financial position in a variety of ways.


LEVERAGE: Premium financing allows you to use current assets and a life insurance policy’s cash surrender value to obtain the coverage you need.


TAX SAVINGS: By paying interest instead of premiums, and structuring ownership of the life insurance properly, you can minimize gift and estate taxes. You can use annual gifting exclusions rather than prematurely tapping into lifetime exemptions.


RETAINED CAPITAL: Many high net worth individuals earn large returns on investments. Premium financing lets you keep your money working for you in high-returning asset classes instead of disrupting the capital to pay life insurance premiums.


INCREASED INTERNAL RATE OF RETURN (IRR): Utilizing premium finance reduces your outlay in the early years, increasing long-term IRR.


ESTATE PLANNING: Succession planning can be expensive. Financing life insurance premiums provides a more cost-effective alternative.


ASSET ACCUMULATION: Financing premiums can allow you to protect current investments while obtaining a needed death benefit. Once your loan is paid off, you will have access to the cash surrender value for immediate and future use.