With external factors shutting down many of our daily habits and altering our professional lives, we naturally seek guidance to navigate the unknown. Information is coming in from all types of sources, and the fluctuating financial markets are a constant reminder that the only certainty is uncertainty. On the brighter side, we are finally given the chance to unsubscribe to unwanted emails from companies who want to let us know they are “here for us.”
Male 50 and Female 49 are highly compensated physicians based in a Texas Hospital System. They areinterested in exploring the benefits of using cash value life insurance to provide future liquidity in the event of death and primarily as a vehicle for income. Their current net worth is $15M and they have a combined household income of $1.75M/year. As part of the planning, they have agreed to use $300,000 of after tax money, per year, for 5 years.
Connecting with people in today’s digital age has never been easier. This convenient luxury has allowed us to accomplish goals faster, indulge in instant gratification and even receive an online order in a matter of just a few hours. With social media and simple web searches literally at our fingertips, we can reach out to virtually anyone to connect and establish a professional network. However, when it comes to building an authentic, unique and dependable network, how does one differentiate themselves to connect on a deeper level and provide a sense of trust and security for potential business transactions?
Although coastal elites may be the major-league players in the credit-funded world, there is still a thriving opportunity for any business who understands and uses financing to transact. With an understanding of the ebb and flow of financing to transact, locally owned business owners may be more open to the concept of leverage and arbitrage to enhance life insurance planning options.
Are you aware of risks that may be up for consideration in doing a premium finance transaction? From personal risks, to loan and collateral risks, to systematic and unsystematic risks, we invite you to read our most recent article to learn what key factors to understand and consider.
Premium financing, to many advisors, is a relatively easy advanced market concept to understand: Using leverage, clients are able to buy the amount of life insurance they need, not just the amount they can afford.™
You’ve heard the term Premium Finance, but you don’t know how it works. Learn the ins and outs of Premium Financing for Life Insurance including how it works, how it can benefit your clients, the ideal client profile and when Premium Financing would be preferable to other types of loan investment alternatives.
Premium Financing is a strategy whereby a qualified borrower accesses 3rd party financing to pay for large life insurance premiums. Individuals and businesses can now obtain their desired amounts of coverage with minimal initial cash flow.
Mr. Attorney is a sole practitioner. He is age 53, planning on retiring at age 65. He has no partners, but several staff. He feels his staff is paid well and rejects the notion of providing them with significant retirement benefits other than a standard 401(k). He has reviewed several retirement options and has rejected most, primarily because his staff would have to be included.
The most frequent question we get from our clients is “What happens if the product doesn’t earn the illustrated rate of return?” We find that question is impossible to answer without looking back at the historical data as a point of reference. Attached are two examples from two different carriers.