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Capital Efficiency
Potentially use external capital to help fund premiums while preserving more of your own liquidity for other purposes.
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Portfolio III • Advanced Planning
IUL Premium Financing. Leverage capital. Build strategically.
For qualified clients, premium financing can use outside capital to help fund premiums on a large, properly structured life insurance policy — rather than providing all of the premium capital directly.
Three relationships. One strategy.
Client
Lender
Life Insurance Policy
The Concept
What is premium financing?
A qualified client may borrow funds from a lender to help pay premiums on a properly designed life insurance policy. The client contributes capital according to the strategy and lending arrangement, and the policy is typically pledged to the lender as collateral.
- Client
- Financing
- Life Insurance Policy
Designed to support
Capital Efficiency
Protection
Legacy
Long-Term Planning
Strategic Architecture
01
How the Strategy Works
Six steps. One coordinated plan.
Select a step to see how the strategy comes together.
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Why Consider Premium Financing?
Strategic advantages, thoughtfully applied.
02
Preserve Liquidity
A properly structured strategy may keep more personal or business capital available for other opportunities and obligations.
03
Large Permanent Coverage
Worth considering when there is a significant permanent insurance need and a substantial premium commitment.
04
Legacy Planning
A properly designed policy may support long-term family, estate, or generational planning objectives.
05
Business Planning
Potential applications for business owners, depending on the specific planning need and structure.
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Strategic Flexibility
Structures can be tailored around lender requirements, policy design, collateral, interest rates, and your objectives.
Potential advantages depend on the financing terms, policy design and performance, and each client's circumstances.
The Capital Relationship
Two sources of capital. One purpose.
Client capital and lender capital work together to fund the policy premium — and the policy anchors the long-term strategy.
Source 01
Client Capital
Source 02
Lender Capital
Combined
Policy Premium
Life Insurance
+ Long-Term Strategy
Client Capital
Lender Capital
Policy Premium
Life Insurance
+ Long-Term Strategy
Client capital
Contributions, collateral, or interest payments, as the structure requires.
Lender capital
Financing provided toward premiums under the lender's terms and approval.
The policy
A permanent life insurance policy designed around protection and long-term objectives.
Conceptual illustration. Structures, contributions, and outcomes vary and are not guaranteed.
Strategy Conversation
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Who May Consider It?
Is this strategy worth exploring?
Premium financing is generally considered when several of these factors are present. Select the ones that describe your situation.
0 of 8 factors
For exploration only — not an eligibility assessment. Suitability is determined through a full review with a qualified professional.
The Moving Parts
Eight components. Working in concert.
A well-designed strategy coordinates each piece. Select any component to learn its role.
The Long-Term View
More than funding a premium. A long-term relationship.
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01
Structure
Design the policy and financing around your objectives.
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02
Funding
Client and lender capital fund premiums as structured.
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03
Monitoring
Policy performance, loan terms, and collateral are reviewed regularly.
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04
Management
Adjustments keep the strategy aligned as conditions evolve.
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05
Long-Term Planning
Protection, liquidity, and legacy objectives, pursued over time.
The Advanced Planning Ecosystem
One pathway within a larger plan.
Portfolio III • Advanced Planning
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IUL Premium Financing
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Adjacent pathway
Annuity Premium Financing
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Adjacent pathway
Wealth Transfer
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Adjacent pathway
Estate Planning
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Adjacent pathway
Business Planning
Adjacent pathways are explored individually during your strategy session.