Premium Finance Life Insurance

This is a very important estate planning tool, and over the last 30 plus years, high-net-worth individuals have been successfully using leverage planning to acquire the life insurance they need.

Those who don’t understand the true benefits of life insurance premium financing worry this is a tool dependent on interest rates or policy performance. But even when interest rates have been high and markets have been shaky, financially savvy professional insurance people have been working closely with banks, attorneys and CPA’s in offering life insurance programs that make economic sense while providing monies to protect their estates and assets from taxation.

No One Plans to Fail, They Fail to Plan

Even in difficult economic times High-net-worth individuals continue to grow and protect their wealth. They take advantage of leverage and actively look for investment opportunities that yield returns greater than the cost of capital. In other words, many need life insurance to address inheritance, business and tax issues, but they’d prefer to keep the funds they would spend on life insurance premiums in investments that yield more profitable returns. Premium finance is not a gimmick. It is not free insurance. It never was and never will be.

Retained capital and lost opportunity costs are not the only reasons to consider premium financing. Premium financing is a leverage sale, which can generate substantial benefits for your family one day in the future by creating liquidity when needed the most for estate tax or capital gains related issues, to settle family disputes that arise and to protect and provide for the ones you love the most.

Premium financing has been a planning tool that works well for individuals with significant wealth and highly appreciated assets. It can also be a viable strategy for mid-market, high-income-earning clients who demonstrate a need for life insurance, for estate preservation or estate creation, and an ability to service debt associated with premium financing. When the need and ability are there, premium financing can be for borrowers from many walks of life.

You should also consider premium financing for clients who are looking to purchase life insurance without liquidating other investments or changing spending; who don’t like traditional methods of life insurance payments; or who have trust-owned life insurance and want to reduce annual gifting requirements or save on possible gift taxes.

" Life insurance is a very attractive financial product that when structured correctly is tax favored. I am unaware of any other product that can offer this type of opportunities generating wealth on a tax favored basis. "

Here are some important elements you’ll want in your plan:

  • An income tax-free death benefit
  • Tax-deferred cash value growth
  • Tax-free access to cash value, if done properly
  • Creditor protection, depending on ownership and state of issue.

If the policy is owned by Dynasty Trust you afford the family proceeds that may avoid estate taxes and generational skipping taxes for up to 1000 years or longer. America’s wealthiest families have made a Dynasty Trust a very popular planning tool and when funded with life insurance proceeds. I cannot think of a better tool available for transferring and/or creating wealth.

Call or contact us for more information
1-800-313-PLAN (7526) or email

“The Team At Wealth Preservation Was Able To Design A Full Financial Plan From Start To Finish To Provide Growth And Guaranteed Lifetime Income”

–R. Katz, Palm Desert, Ca