Darin D. Duin, CEP
15808 West Dodge Road, Suite 200
Omaha, NE 68118
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.