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