Premium Finance Life Insurance Plans FAQ
All The Life Insurance Coverage You Could Want, Just Without The Premiums!
When people first hear about premium finance they typically have some of the same frequently asked questions. The important thing to realize is that wealthy families have safely utilized premium finance life insurance for many decades. In fact, these plans account for a considerable segment of the business that is written in the life insurance industry every year.
Premium finance life insurance plans require a higher level of both life insurance and banking expertise from its manager. One cannot simply walk into any accounting, legal or financial advisor’s office and be offered this level of life insurance service.
Premium finance is the ultimate tool that life insurance provides for protecting your assets and your family. TPA Services brings together a team of industry-leading specialists in order to develop and customize each premium finance case so that it will seamlessly fit into our clients’ existent estate plans.
Can I Qualify?
Premium finance life insurance is not used only by individuals for estate planning purposes. TPA Services also specializes in implementing these benefits into corporate owned life insurance (COLI) programs as well. COLI programs have been utilized by more than 70% of recent Fortune 1000 companies as well as many other top financial institutions. Contact us today and let us help you to secure both your personal and business interests with millions of additional dollars in tax-free, liquid income.
Although premium finance life insurance programs have been thriving for decades, only a handful of agencies and financial institutions have the resources and expertise necessary to successfully manage these advanced life insurance cases properly. We are proud to be one of the leading agencies that offer premium finance life insurance options to their high-net-worth clients.
The Teachers Pension Advisory Services Family Wealth management team reviews all premium finance candidates on an individual basis. Our premium finance clients are typically asked to demonstrate an asset base (liquid and illiquid) of several million or more dollars in order to be eligible for a premium finance life insurance program.
The Premium Finance Life Insurance Process: How It Works In 9 Steps
Step 1: Insured works with Teachers Pension Advisory Services to select universal life insurance coverage from our selection of A-rated providers. The policy will be housed in either an existent or newly formed life insurance trust. Any applicable cash value benefits earned by the insured through their prior policies can be transferred tax-free and received as additional cash value in their new program.
Step 2: Teachers Pension Advisory Services negotiates preferred, relationship lending terms for your life insurance coverage on your behalf. We select from an assortment of premier banking institutions. All of these institutions have in-house departments of analysts prepared to assist Teachers Pension Advisory Services in the servicing and maintenance of your premium finance program.
Step 3: The bank pays the annual insurance premiums on the insured’s behalf to the life insurance company.
Step 4: The life insurance trust pays interest (if applicable) to the bank.
Step 5: The premium finance life insurance program allows excess cash value interest to accrue over time within the universal life insurance policy through its equity indexed crediting. This will build a spread to be used to offset the interest paid on the life insurance loan.
Step 6: Teachers Pension Advisory Services closely monitors the progress of the insured’s premium finance life insurance program. Following the surrender period, sufficient cash value will accrue and allow the trust to fully pay its life insurance loan obligation. The excess cash value remaining can be used to maintain or even increase your death benefit with no outstanding liability remaining.
Step 7a: The life insurance loan to the bank is repaid either through the premium finance life insurance cash value or its corresponding death benefit.
Step 7b: Bank receives loan principal repayment plus interest if applicable.
Step 8: Upon the insured’s death, the trust receives the remaining death benefit proceeds entirely free from both estate and income taxes.
Step 9: The trust distributes proceeds to the insured’s heirs completely tax-free
What Makes Our Premium Finance So Unique?
In a Teachers Pension Advisory Services premium finance life insurance program, our clients qualify to have their life insurance premiums paid for on their behalves by some of the premier lending institutions in the world today. There is just no reason to continue to make steep, life insurance premium payments every month when a bank would be glad to make them for you!
Contact us today to see if you can qualify to secure these types of advantages with your life insurance.
Although premium finance life insurance has been a fixture in the industry for decades now, Teachers Pension Advisory Services takes the structuring of premium finance life insurance to the next level. We are conservative money managers who utilize our numerous affiliations with the top premium finance life insurance carriers and lenders in the industry to negotiate preferred, relationship terms that surpass any of our competitors. It is the terms that are negotiated which make all the difference between a good premium finance plan and a great one. Our terms will not disappoint you.
Cash Value Crediting
Our premium finance life insurance program provides safety and security of principal so you will know that not only is your death benefit intact but that you are also always earning additional cash value at the same time!
How is this possible?
In a Teachers Pension Advisory Services premium finance life Insurance plan structure, your policy earns cash value when our lenders pay the premiums on your behalf. Our equity-indexed plans are also guaranteed to never reduce your cash value that you earn.
We work with the leading life insurance carriers and only endorse their best cash value building products that contain no variable crediting components. We demonstrate to our clients how there is absolutely no reason to take on unnecessary risk in order to earn a high rate of return with your life insurance.
The cash value accumulation in equity-indexed, universal life insurance compounds every year. Your gains will always lock in annually and can never be lost.
What Lenders And Life Insurance Companies Offer Premium Finance?
At Teachers Pension Advisory Services, our independence and industry affiliations with numerous life insurance carriers afford us the ability to offer the premium finance life insurance products with the most security and benefits while also carrying the lowest cost of insurance.
There are a limited number of insurance agencies that bring the expertise and on-site resources necessary in order to coordinate this level of advanced life insurance planning. TPA Services is one of the leading agencies in the industry for premium finance.
Premium finance calls for a delicate balance to be struck between the lending and life insurance aspects of its program in order for them to work in perfect harmony. Many seemingly reputable insurance agents and agencies either fall short in striking this balance or may have never seen or possibly even heard about these types of cases due to their magnitude and enormity. Teachers Pension Advisory Services oversees and manages all of the lending and life insurance aspects of our premium finance program on behalf of our clients to ensure that they are receiving the most favorable premium finance terms possible.
Would You Like to Enjoy Lower Interest Rates? We Can Help!
Advanced life insurance cases such as these require the highest level of servicing. Having a qualified and capable lender is paramount to the success of any premium finance program.
Our elite selection of lenders are comprised of some of the oldest and most renowned financial institutions in the world, who have their in-house departments of analysts ready to assist us in maintaining these plans for our clients.
In becoming Teachers Pension Advisory Services estate planning client, we will represent YOUR interests with these financial institutions. As your representatives, Teachers Pension Advisory Services presents all of its Family Wealth Services clients with the opportunity to pursue preferred, relationship terms for both your personal and business needs based on financial suitability.
The Teachers Pension Advisory Services preferred, relationship borrowing terms can include opportunities such as:
- Low, low interest rate loans
- Ability to fix, swap or float interest rates at any time
- Little to no collateral
- Minimal Fees
- Options for full, partial or no interest payments at all
- A non-recourse, limited liability structure