Finance For Life Insurance – Little Out of Pocket

Finance For Life Insurance – Little Out of Pocket

If you require a life insurance policy for income protection or estate preservation and do not have the liquidity to pay annual premiums, you might qualify for life insurance premium financing.  You could qualify even if you require as little as $1 million to $3 million of coverage.

While collateral might be required and usually some small out of pocket will be required in a loan scenario, we have actually illustrated scenarios where no additional collateral is needed besides the policy itself.  Of course, the borrower will have to sign the necessary documents, and if a shortfall were to occur the borrower would be liable.  But we recently ran an illustration using guaranteed values and can illustrate with confidence that the borrower will never have to post additional collateral.

In this particular instance, the insured requires three million dollars of coverage  and can pay about $15,000 for ten years and maintain coverage until age 100.

Comparative scenarios paying all premiums out of pocket were either more expensive or did not provide needed coverage for the individual’s lifetime.  Premium financing helps accomplish obtaining and retaining coverage for life.

We can run these scenarios for you and get you Clear Results For Life.

If you are in your 30’s to your 60’s these strategies could work for you.  Give us a call at 901.260.7879 to discuss your life insurance and premium finance needs.

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