PURCHASE LARGE AMOUNTS OF LIFE INSURANCE USING AVAILABLE INSTITUTIONAL FUNDS
THE FACT IS ALMOST EVERYONE COULD USE THE BENEFITS OF LIFE INSURANCE, AND MOST WOULDN'T MIND OWNING MORE ... IF IT DIDN'T COST SO MUCH.
Premium financing is an advanced wealth preservation tool used by high net worth individuals in need of large life insurance policies to cover an estate tax bill, provide a family legacy or used for charitable giving.
John, age 65, has a sizable estate wants his heirs to pay the future estate tax bill with the proceeds from a $10 million life insurance policy he has been looking at purchasing. As John quickly finds out, Premiums on a $10 million policy can run into hundreds of thousands of dollars a year. So John learns of a technique where an institution or bank can lend him the money to purchase the policy. These are high cash-value contracts so John is able to use the cash value in the life insurance contract as most of the collateral . Once the cash-value in the contract grows enough to fully cover the bank loan any additional collateral that was required is now released. When it’s done correctly, the cash value growth inside the policy pays off the bank loan and funds the policy for rest of John’s life. What John did here was pay a fraction of the cost by only paying interest on the loan, instead of writing an annual "six-figure" check for the normal premium payments required by the insurance company.
HRG works with the top banks, insurance companies and premium finance specialists to help meet your unique needs and goals. Our conservative approach combines high cash value life insurance with low-cost loans not available to the general public. We work with some of the largest and most highly-rated life insurance companies in the U.S. who offer products that can provide substantial cash value accumulation. The cash value accumulation in these products have historically exceeded the projected borrowing costs for these policies. Past performance is no guarantee of future results.
Call our office for a free assessment on how a properly designed premium financed program can save you potentially hundreds of thousands of dollars on your life insurance program.