Premium Finance Life Insurance Benefits & Advantages

A Safer Way To Purchase Life Insurance

Guard Against Liquidity Shortfalls

You cannot afford to have a “set it and forget it” mentality when it comes to your estate planning. You may have already done a significant amount of estate planning already, but if you currently have a substantial portion of your wealth tied up inside of illiquid assets and investments, there is still more work that needs to be done.

Why?

Both State and Federal estate taxes can destroy the estates of high net worth families, especially the asset rich and cash poor ones. These are the estates who hold a disproportionate amount of wealth in illiquid assets such as real estate, partnerships, private stock ownership and other closely held businesses.

Illiquid assets are included in estate tax valuations by the IRS just as liquid ones are. The deceased estates of the asset rich and cash poor can leave behind such excessive estate tax liabilities that there may not be sufficient cash on hand to fund them.

Have you taken a look at your projected estate tax liability lately?

The asset rich and cash poor trap is often times the biggest estate planning hurdle for high-net-worth families to climb. How does an estate that is out of gifting and trust options and who cannot afford the out-of-pocket life insurance that would be necessary, avoid having to sell off significant portions of its legacies and assets?

Do not allow the IRS to spark a fire sale of assets in your family. Are you aware that your estate may also be charged interest on its estate tax liabilities for failure of payment? By sitting down with our estate planning specialists, we can help you objectively assess the status of your entire estate plan and assist you in determining how you can improve on your current life insurance program.

Clients approved for our premium finance life insurance program will experience the advantages of having an increase in both the affordability and benefits associated with their life insurance. This will serve to fully eliminate any susceptibility to a potential estate tax liquidity shortfall.

No Premiums Necessary

Every once in a while, something comes along that sounds too good to be true, but for once actually is that good. Premium finance allows for the entirety of your out-of-pocket life insurance expenses to be paid on your behalf. The leveraging of life insurance premiums will enable you to safely secure millions more dollars in permanent benefits compared to your current life insurance plans. The best part is that you will never have to pay a life insurance premium again!

Tax and Living Benefits

We work closely with your financial advisors and other fiduciaries to help structure these premium finance life insurance plans outside of your estate. Your premium finance life insurance program will be housed inside of an existent or newly formed trust where the benefits can be passed down in full to your heirs tax-free over many generations.  Our estate planning specialists believe strongly in sound, comprehensive estate planning complete with the right mix of trusts and gifting.

We will help you to put a life insurance program in place that will perfectly complement your existent estate plan. Premium finance enables estates to safely secure millions of dollars in added benefits of which you will never owe one penny to the IRS.

The very idea of life insurance often makes people assume that they have to die in order for their benefits to be accessed. This is actually not the case. Although tax-free death benefits might be the most well-known feature, premium finance life insurance also provides you with an additional opportunity to access portions of your plan as living benefits. This can be accomplished through the use of tax-free distributions from the premium finance program’s cash value that over time is continuing to both compound and grow income tax-deferred. The insured even has the option of accessing these tax-free distributions annually for the rest of their life while still maintaining their death benefit in the process.

Improve Your Life Insurance and Keep the Rest of Your Portfolio Intact

Premium finance offers you an opportunity to secure a level of benefits that would not be possible in life insurance otherwise. TPA Services can allow you to build your own personalized premium finance program with minimal out-of-pocket costs and fees.

The premium finance clients who we represent are in the top income tax bracket, and they understand the value of using life insurance to diversify and enhance their portfolios with tax-free, liquid income. By employing premium finance, there is no longer a need for high-net-worth families to uproot their lifestyle and liquidate high performing or illiquid investments in order to cover their future estate tax liabilities.

Increase Your Charitable Giving

Wouldn’t you like to give more and pay less all at the same time? Do not force your loved ones to have to write a disturbingly large check to the IRS or sell off a majority of your estate’s assets just to be able to afford its resulting tax liabilities once you are gone. Wouldn’t you rather see your estate’s legacy be directed towards your family or the causes and organizations that mean the most to you? Poor estate planning could prevent your hard-earned legacy from being passed down at all.