RESOURCES - premium financing
Overview

Life Insurance Premium Financing allows high net worth individuals an efficient way to finance sizable life insurance premiums. Rather than using investable assets to pay the premiums the borrower is able to retain current high yielding assets and have them readily available for future investments.

In recent years, premium financing has evolved into a “must have” strategy for Trusted Advisors operating in the high net worth individual (HNWI) market. This tool enables the HNWI to purchase the appropriate amount of life insurance, maintain their current investment portfolio, and more easily execute wealth transfer strategies. The intrinsic efficiency of a premium finance transaction often times allows another substantial benefit; the client can obtain the coverage needed and not settle for a reduced amount due to premium concerns.

Premium financing lets HNWI clients finance premium payments with little or no out-of-pocket costs. Additionally, it allows them to utilize “other people’s money” (OPM) to execute this strategy and eliminate the need to liquidate high-yielding assets. Using OPM can be accomplished by using existing life insurance policies and/or other assets as collateral. The use of OPM is a strategy used by HNWIs to purchase large ticket assets.

Madison Brokerage Corp. partners with a number of qualified institutional lenders to execute these strategies on behalf of the trusted advisor. Our extensive life insurance experience, proven track record, seamless execution and superior service lets Madison Brokerage stand out from our competition. We put our deep understanding of the marketplace and documented history of success to work for you in designing and executing complex solutions.