What we do

We provide tailored-made, dynamic solutions to create liquidity through life insurance and premium financing structures. We do so to address potential liabilities such as:

  • Estate taxes: By using life insurance to pay off the estate taxes due upon ones’ death, you protect other assets from having to be liquidated, such as real estate, shares in a business or investment assets..

  • Asset Protection: By having proper asset protection, you protect yourself from creditors, lawsuits, divorce, bankruptcies, etc.

  • Funding of Buy-sell Agreements: By using life insurance to properly fund a buy-sell agreement, the business can carry on as you desire.

  • Funding of Charitable Causes: Leave a legacy to a charity or religious mission of your choice

  • Income Protection: Ensure your family has the income they need in the event of your passing

  • Debt Payoff: Payoff remaining debts such as mortgages, business loans, etc.

  • Estate Equalization: As part of your family's business succession goals, ensure the next generation is provided for equally

  • Provide a Legacy: Create a legacy that will last for generations to come through life insurance planning.

WHY PREMIUM FINANCING?

  • Retain your capital to be used for investing rather than paying outright for life insurance premiums

  • You maximize the actual amount of death benefit you need and your leverage a loan to pay the premiums. This ensures you get the proper coverage without affecting your current cash flow or lifestyle.

  • By not paying the premiums directly, your money has the opportunity to outperform the borrowing cost by taking advantage of an insurance company’s crediting rate.

  • You avoid selling assets to cover the cost of the premiums, therefore, you do not trigger a taxable event due from such sale.

  • Allow investments within the policy to grow free of income taxes

  • Gain access to liquidity at an interest rate that is often less expensive than a “policy loan”

  • Conserve Lifetime Gift Exclusion

  • Maximize Use of Annual Gift Exclusion

WHY BORROW?

  • Many clients elect to finance the costs of a life insurance premium with a loan, which is collateralized by the cash surrender value of the policy, in addition to marketable securities.

  • The funds that the trust borrows to pay the annual premiums and interest expenses generally are available free of gift taxes

 CONSIDERATIONS:

  • As with any borrowing strategy, there are inherent risks, including:

o    Interest rate fluctuation

o    Market volatility and the possibility of collateral shortfall

  • Before making the decision to finance your life insurance strategy, we encourage you to discuss your objectives with your legal and tax advisors