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Advanced Premium Financing

A Great Estate Tax Planning Tool Using Other People’s Money

Premium financing is an advanced wealth preservation tool used by high net worth individuals in need of large life insurance policies to cover an estate tax bill, provide a family legacy or bequeath a charitable gift.

Here’s an example of how it works. Let’s say Bill, age 65, wants his heirs to pay his estate tax bill with the proceeds from his $15m million life insurance policy. Premiums on a $15 million policy can run into hundreds of thousands of dollars a year so Bill gets a commercial bank to pay his premiums. Bill is able to do this by using part of his stock portfolio as collateral against the loan. Once the bank loan is covered, his stock is released as collateral. When it’s done correctly, the cash value growth inside the policy pays off the bank loan and funds the policy for the rest of Bill’s life. Here’s the best news. Bill may never have to write a premium check.

Advanced Wealth Preservation works with the top banks, insurance companies and premium finance specialists to help meet your unique needs and goals. Our conservative approach combines high cash value life insurance with low-cost loans not available to the general public. We work with some of the largest and most highly-rated life insurance companies in the U.S. who offer products that can provide substantial cash value accumulation. The cash value accumulation in these products have historically exceeded the projected borrowing costs for these policies. The minimum death benefit amount required for premium financing is usually $10 million.

Call us today to see how premium financing can enhance your estate planning needs.

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