Life Insurance Premium Financing Firm Provides Retirement Path for Physicians

Sep 21, 2016

Premium Financed Life Insurance enables high net-worth clients to purchase the life insurance they need without liquidating other investments or otherwise changing their normal cash flow. When properly structured, it may also help them transfer assets to children, grandchildren and charities with potentially reduced gift and estate-tax costs.

The partners of Elite Financial Services today announced the availability of their online resource that addresses life insurance premium financing. The website , launched by entrepreneurial experts from the insurance and digital marketing arenas, is offered as the “go to” source for professionals in the small and medium sized business market. In providing an educational overview and a detailed on-demand webinar, professionals can quickly decide if life insurance premium financing vehicle is right for them.

The premium financing strategy allows high net-worth individuals to secure a high payout life insurance policy without having to tie up much, if any, of their personal assets in order to cover the policy premium. According to Principal, Marc Schulman, "These instruments are architected to the unique needs of high net-worth individuals, and as a result we are typically issuing policies with a death benefit payout of at least $1 million or more. As an alternative to paying cash upfront or having to liquidate personal or business assets to cover the annual premium, favorable terms are arranged with financial institutions to have them pay the premium. This cost is covered by a short-term loan from a major bank like Wells Fargo or US Bank, or a handful of other banks that specialize in this highly complex area. In turn, the policy holder makes the regular interest payments while the insurance premiums are paid by the financial institution, thus keeping the life insurance policy in force for the term."

Available for more than 80 years and used by many in the Fortune 500 including IBM and Wal-Mart, but only in the last several years have regulations changed to make this available to the SMB market. As a result, more and more businesses are assigning life insurance policies on their executives, owners and important employees. These are often referred to as “Key-Person” policies, and can provide the funds necessary guide a company through the difficult time of a loss of a key player in their team.

"An even more exciting variable to Premium Finance Life Insurance is that it serves as an investment vehicle for the SMB professional, such as a physician practice, law office or manufacturer,” said Schulman. The policy provides business owners the flexibility to finance a future income stream for the business, while keeping any extra funds within the business. During this time, the value of the policy can continue to grow on a tax-deferred basis. In consideration of tenuous economic conditions, this strategy provides an extremely attractive shelter for businesses.

For more information and informational webinar, please visit

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