Life Insurance Premium Finance 

Problem:           Finding funding to pay for very large amounts of insurance required for estate tax purposes by wealthy clients.

People don’t object to owning life insurance – they just object to paying for it.  For example, a policy often must be owned by a third party or outside entity that by itself may not have the means or cash flow to make large premium payments.

Solution:           Clients with these concerns may seek alternative solutions that allow them to purchase coverage adequate to meet their needs with favorable tax consequences.  (All this without major disruption to their current finances.)  Premium Finance is just such a tool!

The potential client for such a financial approach typically begins with a life insurance need that would require at least one million dollars of premium.  These clients use insurance purchased in this manner for family protection, estate liquidity, wealth transfer, and charitable giving.

Generally these clients have at least a 10 million dollar estate.  To make these plans work, the client must have liquid assets adequate to pledge as security for premium payments.  He must also be able to pass an insurance physical exam and must meet lender requirements.