Premium Financing

Using Leverage to Enhance Returns

Premium financing is a strategy that can deliver a powerful, flexible and efficient option for permanent life insurance premium payments with eligible high-net-worth clients. Premium financing can be a cost-effective, tax-advantaged strategy to help transfer your estate to future generations. It can help you obtain life insurance and use leverage to finance and enhance returns on the contract. These plans are typically a fair market loan arrangement between a commercial lender and an irrevocable life insurance trust (ILIT) where the lender loans the premiums for a life insurance policy on the client's life to the ILIT. The gift to the ILIT is equal to the amount of loan interest charged – not the entire policy premiums. Thus, clients are able to acquire the death benefit needed with little or no gift tax impact.

Premium Financing

Managing Director, Ilana Liss

What is premium financing? Why would you finance a life insurance policy? Who does this unique strategy benefit most? Ilana Liss delves into the benefits of premium financing.

Case Study: Is Premium Financing Right for Me?

For more information about who should consider premium financing, its significant benefits and how it works, download the PDF below.

  Premium Financing: A powerful design for wealth accumulation

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