Premium Financing with Life Insurance

Unused Annuity? How to Avoid Leaving Your Kids With the Taxes

Annuities are arguably the best way to create a stream of guaranteed retirement income that you cannot outlive. We help our clients use them in a comprehensive retirement plan that avoids the usual retirement risks. It’s a popular option, too, with an estimated $2.52 trillion of retirement assets held in annuities just in the United…
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Protect Your Kids and Your Business – 3 Kai-Zen Case Studies

We have three Kai-Zen life insurance case studies here showing how business owners provided for their children through:  This is part of our series on gifting leveraged life insurance to your children to give them tax-free income rather than leaving a later inheritance. For more details on the mechanics, read the main article on Life…
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Gifting Kai-Zen – A High Earner Case Study

We work with a lot of folks who have set up one of these leveraged life insurance contracts, make their 5th and final premium payment, and then ask, “Now what?” Usually, it’s a physician or a well-compensated executive.  They have a couple of options. They can have more than one plan. They’d set up a…
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How A Couple Turned an Unneeded RMD Into Over $9 Million

In this case study for gifting a leveraged life insurance policy, we’re looking at how one couple took their required distributions from their retirement policies and found a tax-efficient way to gift it to their grandchildren. They chose this over the alternative of reinvesting and paying more taxes later.  If you aren’t familiar with the…
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Life Insurance Estate Planning – No Taxes & Financial Security

Between right now and 2045, economists estimate between $60 – $84 trillion will pass from Boomers to their children, mostly millennials. To set the stage for that, the Millennial generation only holds about 5% of the country’s wealth. In practical terms, this generation will go from survival mode to suddenly having a boatload of money. …
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leveraging your life insurance

How to Build Wealth with Life Insurance Plus Leverage

Leverage allows you to buy a bigger home. You put down 20%, then leverage the rest with a mortgage. We also use leverage when buying cars. You make the down payment and borrow the remainder to purchase a nicer car. Why not get a bigger retirement by using leverage with life insurance? Leverage leaves you…
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4 methods for reducing premium financing risk

How to Avoid Premium Financing Risk (The 4 Safest Methods)

​Premium financing presents some risk. It is vital that prospective buyers understand ​premium financing risk when funding a significant life insurance policy. ​Every financial strategy involves a potential downside. Savvy investors do everything they can to mitigate potential losses. While using premium financing to fund your insurance policy can reduce the amount of assets you…
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tax advantages of premium financing for life insurance

How to Take Advantage of the Estate and Gift Tax Benefits of Premium Financing

​The estate and gift tax benefits of premium financing are the most attractive components of this life insurance strategy. There are several ​methods within premium financing you might employ to avoid these taxes. Which ones you pick will depend on your financial situation. ​These financial strategies will apply in different circumstances. Keep in mind that…
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ILIT for premium financing

Using an Irrevocable Life Insurance Trust for Premium Financing

​The first step in setting up life insurance with premium financing is creating an irrevocable life insurance trust. An irrevocable life insurance trust (ILIT) sets up tax benefits to protect large estates from exorbitant ​estate tax obligations. ​This type of trust requires several critical legal and financial decisions. To get everything right while avoiding pitfalls…
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IUL for premium financing

4 Reasons IUL is Best for Premium Financing

​Indexed universal life insurance is, without debate, the best choice for life insurance premium financing. ​Each type of permanent life insurance ​has its pros and cons, but the other types of permanent life insurance have drawbacks that put you at higher potential risks with premium financing. ​On the other hand, an indexed universal life policy…
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