Understanding Life Insurance Premium Financing

With all the effort that goes into providing a solid estate plan for a family, it is unfortunate that life insurance premiums often become obstacles towards achieving goals. Our philosophy is that life insurance, while extremely important to any estate plan, is a component that should work seamlessly with a family’s lifestyle and financial objectives.

How does life insurance premium financing make this happen? By understanding that other elements of a financial plan have the potential to create more wealth for the family. Even with the best life insurance policy available on the market, the benefit is a set amount. Without adjusting the policy or obtaining a new life insurance policy, that amount remains constant. On the other hand, investments in mutual funds or other accounts have the potential to keep increasing in value over time. Wouldn’t it make more sense to divert as much cash as possible into those elements of a plan that can make money? Or, consider the following: a family knows that they will be facing a substantial estate tax burden in the future – an expense that may even force a family to pay such liability by selling assets. The family could start stockpiling funds now to help pay for that expense, but then that money can’t be used to generate more income. The family may be able to obtain a life insurance policy in an amount close or equal to the estimated estate tax expense. Then, when the insured passes and an estate tax is assessed, the family pays it through the life insurance policy’s tax free benefit amount.

It really is just that simple with Banyan Life Financial. We specialize in senior life insurance financing that allows a family’s existing liquidity to be invested in more high-growth areas. Premium financing through Banyan Life Financial places the control of life insurance and life insurance premiums with the family or their financial advisor… where we believe it belongs.

Qualification for senior life insurance financing is equally simple.

• Ideal for individuals aged 70 or over
• Insurable Net Worth of $2 million or higher (no maximum)
• Average to Good Health
  • Preferred, Standard & mild impaired health risk are all often acceptable
• There must be a legitimate need for the life insurance such as for estate planning and/or wealth preservation
  • Please note, financing is not appropriate for those seeking “free insurance” as borrowers are obligated to repay loans in full. Life insurance should be considered a long-term investment and should not be purchased for the intent of selling a policy in a viatical.
• Loan duration can be two (2) years, five (5) years, 10 years or a lifetime depending on what terms most suit the needs of the borrower.

If you or someone you know fits within the described qualifications, then life insurance premium financing may be the smart way for them to achieve their financial and estate planning goals. Simply click here to download our free, no-obligation, informal inquiry to get started.

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