What is Premium Financing?
Premium financing enables you to purchase the life insurance you need without liquidating other investments or substantially changing your normal cash flow. When properly structured, premium financing helps transfer your estate to your heirs without liquidating assets. Additional benefits include access to funds below market interest rates while retaining current stock positions or assets.
In order to maximize coverage, the annual premiums for the policy are financed by a loan. By borrowing these funds, you can reduce the out-of-pocket expenses while still ensuring adequate protection for your assets. Clients meet the lender’s collateral requirements with assets such as cash, market securities, or mortgage-free real estate properties.
“There are risks and costs to a program of action. But they are far less than the long-range risks and costs of comfortable inaction. ”
Just like any valuable investment, premium financing comes with its own set of risks, including market volatility and changing interest rates. However, we firmly believe that life insurance premium financing planning are essential and beneficial because they enable you to strategically prepare financially for the future beyond your own lifetime, all while maximizing the growth potential of your policy during your lifetime. At Perpetual Wealth Management, we view our clients as partners. We are committed to keeping our clients informed about any potential risks and standing by them every step of the way to address and minimize these risks effectively.