675 3rd Avenue,
Premium financing allows you to pay for life insurance premiums over time, preserving your liquidity for other investments or expenses.
By borrowing to pay premiums, you can potentially access a larger life insurance policy than you would with an upfront lump sum payment. This can lead to amplified wealth accumulation.
In certain cases, the interest on premium financing loans may be tax-deductible, providing potential tax advantages.
Life insurance policies can offer a degree of asset protection, safeguarding your wealth and legacy for your beneficiaries.
Premium financing can be a valuable tool for estate planning, helping you efficiently transfer wealth to the next generation.
For high-net-worth individuals and businesses, premium financing can help preserve liquidity and maintain the flexibility to take advantage of investment opportunities as they arise.
Net Worth: $30M
Life Insurance Need: $10M
Premium Finance Suitability:
Avoids liquidating investments, maintains current strategy.
Net Worth: $50M
Life Insurance Need: $15M
Keeps business capital intact, no need to sell shares.
Net Worth: $40M
Life Insurance Need: $20M
Preserves estate structure, manages tax liabilities.
Net Worth: $25M
Life Insurance Need: $12M
Keeps non-liquid assets, supports philanthropic goals.
Building a solid legacy involves more than just having a life insurance policy. However, funding a policy can often tie up a significant amount of capital, leaving little room for other gifts you may be developing for the next generation, such as real estate or trust accounts. At the end of the day, life insurance is primarily designed to protect your loved ones from the financial burden of taxes and fees that may accompany the transfer of your estate. Depending on the size of your estate, you may require a substantial amount of life insurance coverage to ease this transition. So, how do you finance such a policy without disrupting your other financial plans?
Premium financing lets households and corporations buy substantial quantities of life insurance without paying the higher premiums upfront. We carefully create and manage premium financing plans that can help safeguard and profit our clients. Premium financing requires specific handling. WealthBridge alone does it. We know the approach, how to execute it, and can deliver real results.
Premium financing funds life insurance premiums with a loan from a reputable bank. Thus, the customer temporarily decreases life insurance costs to loan interest rates. This reduces upfront costs. It also frees up the client's resources to invest in other things. The loan offers a tax-deferred additional income stream, therefore the customer benefits:
All following withdrawals are preferred.
As you can see, premium financing is unusual, yet it might change your financial destiny.
Click below to speak with a WealthBridge Premium Financing professional.
Premium financing strategy is used to purchase life insurance financed partially with borrowed premiums. It allows high net-worth individuals who need a large amount of life insurance to use an alternative method for paying premiums – rather than using your current cash flow or liquidating assets to pay premiums, you obtain the funds needed by borrowing from a third-party lender.
Premium financing relies on internal policy funding to pay back the loan. This is not guaranteed, and results may be more or less favorable than illustrated. The ability to internally fund a life insurance contract will be dependent upon the performance of the contract and is not guaranteed. If remaining policy values and scheduled premiums are insufficient, additional out-of-pocket payments may be needed to keep the policy in force or to repay the loan.
Premium financing is offered and administered independently of the companies of National Life Group. National Life is bound only by the terms of the life insurance contracts issued by the Group insurance companies. Guarantees are dependent upon the claims-paying ability of the issuing company. This business strategy is offered and managed by an independent third party who is not affiliated with Equity Services, Inc. (ESI) or its affiliates. Neither ESI, its affiliates, nor anyone acting on its behalf has evaluated the strategy or is authorized to make any representation regarding the suitability, effectiveness, or legality of this strategy, or the suitability of using life insurance in connection with this strategy.
The third-party lender is responsible for creating the premium financing arrangement. The life insurance companies with which we work are bound only by the terms of the life insurance policies that they issue.
As there are various risks associated with premium financing, careful consideration should be made to determine if this concept is suitable for you. These risks include, but are not limited to, interest rate risk, crediting risk, and collateral call risk.