Premium Financed Life Insurance

TR Estate Planning can identify your best options for including life insurance coverage in estate planning. For some clients, implementing a premium financing structure can eliminate the need to liquify assets to pay high insurance premiums.

With premium financing, a bank pays a client’s insurance premium, and the client then pays the bank interest on the loan. In today’s interest-rate environment, for example, that can amount to approximately 3.8% of the total loan provided for one year. The bank loan is repaid as part of the death benefit or through the growth of the policy.

Premium financing is a complex undertaking that requires an understanding of many variables. Every lender TR Estate Planning engages with in this approach has a division devoted solely to premium financed transactions, and we work only with lender-approved insurance companies.

In the right circumstances, premium financed life insurance can yield significant immediate and long-term savings. See our case study for an example of how a carefully planned premium finance structure can help reduce liquidity of assets.