Premium Finance - OLD
We have extensive experience structuring premium finance cases and preparing documents for the carriers to justify insurable interest and insurable capacity for your clients. We leverage our deep industry knowledge and relationships — with highly rated lenders and carriers — along with our full-service back office, fit with strategy design analysts, attorneys, senior-level underwriters and post-sale service professionals, to ensure all details are covered.
Why are Individuals Financing Policies in Today's Environment?
Whether your client desires an additional tax-free income stream during their retirement years, or significant death benefit to pass to their heirs, financing life insurance premiums enables them to earn a spread between expected policy returns and borrowing rates. Anticipated results are a compounded 8-10% tax-free return over time.
Structured For Cash Growth
Building up cash in the policy is an effective way to grow leveraged dollars in a tax-free environment. The cash value in the policy can be accessed, via tax-free distributions, during your lifetime. You may also opt to allow the cash to continue growing over time in the tax-free environment.
Structured For Estate Planning
Ideal for those who desire a substantial amount of life insurance – for business planning, tax planning or to transfer wealth to future generations — and who don’t want to write significant premium checks. Clients finance premiums for various reasons; it could be for lack of liquidity, or they simply would rather use the bank’s money and pay interest at a low rate to provide beneficiaries with death benefit in the future.
Does your client quality?
Premium finance is most effective for your high net worth and ultra-high net worth clients. This is due to the favorable borrow rates that can be secured from banks.
Have a net worth of $5,000,000 or more
Investors comfortable with leverage.
Long Term Investment
Time horizon greater than 10 years or more
Hear From Our Partners
"Schechter has become a valuable partner to us in the Premium Financing and Advanced Design spaces. Their client-first mindset matches our approach perfectly. Most important to us is their unparalleled commitment to servicing these complex structures every year on a go-forward basis."
Jordan Katz, Northbrook, IL, JR KATZ
“The entire Schechter team are absolute pros in the premium financing space. Their legal, banking and product experts guided us through a significant and highly nuanced case design. I very much look forward to our next engagement.”
"Schechter is my partner of choice in the premium financing space. Our firms have a complete cultural alignment and I will gladly put them in front of my most important clients when advanced design opportunities arise."