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Premium Financing has long been a utilized strategy for leveraging the financing of insurance premiums to accomplish long-term goals. With our uniquely designed solutions through exclusive partnerships with the finest financial institutions in the world, we are now able to provide enhanced Premium Financing strategies that are unparalleled in the industry. Our specialized strategies include solutions for a wider range of high-net worth individuals, businesses and non-profit organizations.
Contact us and find out if Structured Premium Financing may be the right fit for you! Fill out the form to the left or give us a call now at 309-291-0712.
Premium Financing has been available for over 50 years, but was primarily used for
the ultra-wealthy as a way to pay estate taxes with no money out-of-pocket.
( Example: $100 million estate x 40% = $40 million due at death to pay federal estate taxes. )
Premium Financed Life Insurance:
How Does It Work?
Premium Financing is a strategy whereby a qualified borrower accesses third-party financing to pay for large life insurance premiums. The insurance companies have constructed specific products for these financed plans to minimize outside collateral needs and maximize returns. This allows individuals and businesses to leverage current assets, maximizing returns via a predetermined cash flow.
Every premium financing strategy is custom-made, with every strategy following a similar path:
1. The process begins by determining insurance coverage needs and financial suitability.
2. A preliminary case design is developed and discussed.
3. Many variations of the design are run until the ideal plan is picked by the client.
4. Formal insurance carrier underwriting and bank financing applications begin.
5. The policy is issued by the insurance carrier. The financing bank requires the owner of the policy
be an Irrevocable Life Insurance Trust (ILIT), or an LLC.
6. The client provides collateral to the bank in the years when the loan balance is above the cash value
inside the policy (usually 8-12 years if insured is under age 60). The shortfall collateral consists of
cash and cash equivalents.
7. When approved the bank wires the premium payment(s) to the life insurance company.
8. Annual reviews should be conducted to evaluate insurance policy performance and ensure
9. Once the policy generates cash value above the loan balance the owner can request tax-free loans
based on the excess cash value inside the policy beyond the loan balance.
Watch the Videos and Learn How
Structured Premium Financing Works.
The Secured Lifestyle Strategy
Employee Retention Strategy
Increasing Donor Contributions
Key Person Insurance
Premium Financing opens the door to other financial solutions such as Key Person Policies,
Buy/Sell Agreements, Debt Reduction, Contributions to Non-Profits, Churches and Universities with no money out of pocket for the donor.
Reduces or eliminates
the out-of-pocket cost
for life insurance.
Retains capital for
Looks to increase
Leverages net worth
and grow wealth.
The Many Potential Benefits
of Structured Premium Financing
With all of these potential benefits, premium financing could be a valuable addition to your business and financial needs. Premium Financing is something truly unique and special for business owners, corporations, non-profit organizations, universities and professionals.
Contact Us To Learn More About
Structured Premium Financing.
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Richard Kirk is your local expert on the subject of Structured Premium Financing.
Feel free to contact him by phone or by filling out the form to the right to find out more about his personal financial practice.
Meet the Expert
CALL US NOW FOR MORE INFORMATION AT 309-291-0712
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