Our mission to provide value to our advisor partners and assist them in navigating the maze of financial services to enhance their client’s lives. Our deep knowledge in the advanced planning space allows our advisor partners to offer unique custom-tailored solutions that many other agencies cannot provide.
Premium Financing is a valuable tool for your affluent clients. Our firm can assist in the case design, implementation and annual servicing of life insurance premium finance case. Many individuals understand the traditional way to design and pay for permanent life insurance through cash payments over time. Utilizing the same life insurance policies but integrating a premium financing strategy, our firm is uniquely positioned to demonstrate a much more advantageous option. In comparing these two strategies side-by-side, clients gain the knowledge they need to make a well-informed decision and position themselves for success for their own financial situation.
Individuals and / or businesses with a net worth of $5,000,000 or more with income in excess of $100,000 with a defined insurance need. Our team of experts can assist you in identifying any opportunities you may currently have with your existing clients.
Generally, an irrevocable trust owns and is the beneficiary with the life insurance policy. One of our partner lenders makes premium payments directly to the life insurance company. Your client, typically the insured, guarantees the loan and may be required to provide collateral in addition to the life insurance policy cash value and death benefit to secure the transaction. The client then gifts interest payments to the trust and the trustee makes interest payments to the lender every year. Depending on case design, age and health of the client, the premium finance loan is repaid either from policy cash value over time, death benefit or outside funds (typically a liquidity event). Generally speaking, premium financing can be a valuable tool for your clients to retain capital for investment opportunities and use some smart leverage to acquire their life insurance needs. Our deep knowledge in this space allows your clients to obtain the best loan rates and terms available. Additionally, our team assists in product selection and working with advanced markets at the insurance carrier(s). Crucial to the long-term success of the plan is our conservative case design and administration of the premium finance plan over time.
Why should my clients consider Premium Financing?
Clients usually understand the most common way to purchase life insurance – with cash payments. What many clients do not understand is that an alternative funding method is available using Premium Financing. By comparing the two options side-by-side, clients are able to make a well-informed decision and will understand the benefits in our life insurance carrier approved funding method. If after you analyze both options you decide not to implement the strategy, at least you will have understood both options are available.
Does my client qualify for the Life Leverage Strategy?
Any individual or business with a net worth in excess of $5,000,000 (liquid and illiquid assets), with an insurance need and healthy enough to obtain life insurance coverage may qualify and benefit from Premium Financing.
What Do I Do When I Identify a Client That Qualifiers?
Once you have identified a client that qualifies, simply contact our office and we can discuss the potential opportunity. If premium financing seems suitable, we have a one-page trial application requesting medical and financial information form the client. Our office can provide a preliminary premium finance case design within 48 hours. After which, we will review the case design with you so you can present the option to the client. If you need in-person or teleconference sales support, one of our team members can assist you. If the client decides to proceed with premium financing, process the financial approval concurrently with our insurance medical approval. When both offers are in place, we assist with the loan documents, collateral assignment forms and book the case in our system to review with you and your client annually.
What if my client already has life insurance in place?
If your client already has life insurance in place we can provide a policy review and analyze the benefits in restructuring your existing policies by utilizing premium financing, creating a cash flow savings.
Let one of our team members contact you and discuss your needs. Whether your next opportunity requires a simplified underwriting process, affordable term life insurance, funding for a Buy/Sell agreement or an exotic, multi-index universal life insurance product with financed premiums, Pelorus Financial Group the experience and knowledge to assist you in closing your next sale.
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