financed premiums

estate and wealth planning

Leave a lasting legacy

Full-service boutique advisory and planning for customized premium financing solutions for estate planning, wealth transfer or business needs
retired couple

Take full advantage of the wealth-creating power of leverage.

When you’ve sacrificed everything to succeed, you want to make sure your wealth is enjoyed by future generations. But without proper planning, estate taxes can eat up to 75% of your wealth. Or worse, your family may be forced to sell some assets they inherit to pay the estate taxes.

Premium financing is the ideal strategy to protect, and grow, your wealth, without draining your capital or depleting your cash flow.

While extremely powerful for preserving, and building wealth, getting it right is complex. Unless your premium financing is structured correctly, you may not achieve the desired maximum results, or end up losing collateral if the market fluctuates.

financial planning

what we do:

Impeccable financial advisory, planning and management for all your premium finance needs

At Financed Premiums we spend 100% of our time creating, analyzing, and optimizing premium financing strategies. Our exclusive focus on this niche means we know how to structure our robust, high-performing premium financing plans that have the right level of risk and return. 

Since the relationships between the life insurance policy, your estate plan, your investments and the loan are complicated, we don’t believe in a one-size-fits-all approach to your policy. 

We coordinate with your providers, and work together to help you build your customized strategy that respects your individual goals and supports your long-term vision.

Premium Financing uses:

As a high-net worth individual, you want to leave a legacy for generations to come. 

Whether you want to cover the taxes due on your estate or to facilitate a smooth transfer of your business, a life insurance policy with a substantial death benefit could be a wise addition to your wealth and estate plan. Unfortunately, the premiums associated with such a plan can be significant. You may need to liquidate investments to cover the cost, potentially exposing yourself to gift or capital gains taxes and reducing your ability to take advantage of growth in your portfolio.

Premium financing is an optimal solution. By borrowing money to pay for the premiums, you can maximize the benefit of the life insurance policy while minimizing your exposure to taxes and leaving your current investment strategy intact.

IS PREMIUM FINANCING RIGHT FOR YOU?

Premium financing is a suitable strategy for those with a net worth of $15 million or greater who wish to use insurance to provide the liquidity necessary to pay estate taxes and ensure that they are able to pass their legacy assets on to their heirs. 

By borrowing money from an outside lender to buy an expensive life insurance policy, you make sure your family can pay estate taxes. The policy serves as the primary collateral to secure the loan. At a later point, money is taken out of the cash value of the policy and is used to pay back the loan, leaving the insured with the policy to pay the estate taxes and successfully transfer his wealth and legacy to his children.

Buy-sell agreements

Every co-owned company needs a buy-sell agreement to dictate what will happen to a partner’s share in the company in the event of a partner’s death.

The surviving partner(s) purchases the deceased partner’s share in the business, using funds supplied by the death benefit of a life insurance policy, which was previously purchased by the surviving partner (or business) on the life of the deceased partner. Using whole life or other forms of permanent insurance may eat up the company’s cash flow or just be “too expensive”.

Using term insurance may be cheap in the short term but the cost will eventually be quite substantial. The more critical issue with using term insurance to fund the agreement is that over 90% of business partnerships don’t end in death; rather they generally end in retirement, disability, dispute or sold to escape personal debt. Therefore, in the majority of cases a term policy won’t be capable of supplying the necessary funds to enable a smooth business succession. 

Premium financing, using other people’s money to fund high-performing permanent cash value policies. The company’s cash flow will remain available to grow the company, the death benefit will be available in case of death, the disability rider in the policy will be available to fund the agreement in the event of disability, and the cash value in the policy will be available in case of retirement, dispute or to escape from personal debt.

Keyman insurance

Most small companies and businesses have one or more key employees that the business success heavily relies upon. In the event of an unexpected death or disability to such an employee the company would potentially lose business or undergo significant expense to find, train, and or hire a replacement. These expenses or loss of business can potentially send a business into bankruptcy.

A business can use premium financing to protect itself from such risk, while growing cash value, which will be available for company use; by purchasing a policy on the life of the key man, with the use of outside funds.

Our services include:

Financial analysis

Bank negotiations

Legal collaboration

Tax structuring

Risk analysis

Policy correction

Strategic trust planning

Multi-generational planning

Ask us how we can help you protect your wealth so you can leave a meaningful legacy.

Book your free no-obligation call with Mel.

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