Planning for the future with premium financing for life insurance
Acknowledging pain and grief happens after the loss of a loved one. Having a life insurance policy can aid it this difficult time. Protecting your family and loved ones will make this transitional period of time easier to bear. If you don’t want to liquidate your estate as you plan for your family’s future you can look to premium financing.
Affluent investors have used premium financing since the mid-1950s. There are a variety of business reasons for exploring premium financing. Typical clients of the program are senior citizens seeking life insurance to fund inheritance taxes for a sizeable estate. With the volatility of short term borrowing rates, premium financing only makes sense if the insured has a life expectancy of less than 20 years, or can repay the loan within that time. Between cash flow issues, existing high performing investments, timing, or opportunity costs, there are many sound financial reasons to choose premium financing to fund insurance premiums.
Filed under: Estate Planning, Life Insurance, Life Insurance for Seniors
