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Premium Financed Life Insurance
Using someone elses money to pay your large premium! |
Premium Financing is really nothing new to the Life Insurance Industry, but has seen a resurgence in recent years.
The concept is simple. Use someone else’s money to pay your premiums, and you can keep your capital working for you instead of paying premiums with it.
How It Works
We help you obtain a loan with a major global money manager like Mellon bank or RBS (Royal Bank of Scotland).
The loan is typically collateralized by simply placing negotiable securities or other assets on deposit with the institution.
For this the institution will front the annual premium payment for the Life Insurance policy.
The negotiated Life Insurance policy will have a special provision that allows the Death Benefit of the policy to actually reverse amortize and go up the loan and interest for the premium payments made by the Bank.
Upon the death of the Insured, the bank is in the 1st lean position.
The bank is actually willing to wait until the death of the insured to collect its interest and recover the principal loaned for the annual premium payments.
The insured heirs will receive the remaining amount of the policy which will be the original coverage underwritten in the 1st place.
Oh, and by the way, remember the negotiable securities the insured had to put on deposit with the Bank. This will also be returned to the family plus any gains based on investment performance.
People that do this sort of planning are usually high net worth persons with substantial life insurance policies already on the books.
This program will offer them an alternative method to paying high premiums with out of pocket dollars. |
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