Wealth Accumulation
Premium financing is a strategy whereby a qualified borrower accesses third-party financing to pay for large life insurance premiums. Insurance companies have constructed specific products for these financed plans to minimize outside collateral and maximize returns. This allows individuals and businesses to leverage current assets, maximizing returns via a predetermined cash flow.
Premium Financing is an opportunity to purchase life insurance without disrupting your current investment portfolio. The idea is that you borrow at a loan interest rate that is currently lower than what you expect to earn on investments or other assets. At a time in the future, you pay back the loan principal with a planned rollout technique or, if death occurs earlier, the death benefit will pay the debt.
Taking advantage of an insurance company’s crediting rate that may outperform the borrowing costs.
Reducing or eliminating the out-of-pocket cost for life insurance.
An opportunity to outperform the borrowing cost through money saved by not paying the premiums.