Premium Finance Group

May 28, 2009

Premium Finance Group is a boutique financial services and consulting firm that recognizes the relationship between multiple financial disciplines in developing an optimum solution for clients needs. Our financial professionals have years of experience across multiple areas of finance, bringing unique perspectives and solutions to our client's situation. But beyond any other measure, we listen to our clients to understand their needs and objectives - we recognize that a "one size fits all" approach used by less attuned firms most often doesn't provide the optimum solution.

By customizing and tailoring quality finance products and services, we strive to not only meet but exceed our client's expectations in every way possible. This is done using a "best practice" philosophy and using highly rated vendors and financial institutions as the foundation for our client recommendations.

We Are Client Focused in All That We Do

Life Insurance Premium Financing is a valuable tool for estate planning and wealth transfer planning. It allows high-net-worth individuals to purchase the appropriate amount of life insurance they need without significantly depleting their working capital or liquidating high-yielding and/or low cost basis assets. Premium financing allows high net worth individuals to use a combination of the life insurance policy and/or other assets as collateral for a loan to fund life insurance policies.

Premium financing is typically appropriate for clients:

  • With large estates
  • That wish to preserve wealth for future generations
  • With significant insurance needs
  • Who desire to finance payments with minimal out of pocket costs
  • Reluctant to liquidate high yielding and/or low cost basis assets
  • Uncertain of the potential changes in the Federal Estate Tax
  • Wish to leverage gifting capabilities

Client Profile

The requirements for financing are:

  • Insured has a legitimate need for life insurance (estate planning, business, etc)
  • Is a “high net worth” individual
  • Has capability to post collateral as needed

The Process

The following steps outline our program:

  1. A Case Submission and Illustration Summary need to be completed
  2. After the appropriate medical records are obtained, illustrations and offers are requested from insurance carrier(s).
  3. Upon review of illustrations from insurance carriers, we will evaluate and recommend a policy suited to the client’s needs.
  4. If financing is appropriate, a Term Sheet from the financier will be prepared that outlines the terms of the loan and loan amount.
  5. Upon client approval, additional closing documents will be prepared.
  6. Policy is issued to owner and premiums are paid by lender for the full term of the loan.
  7. At the end of the loan term, policy owner reviews options, which may include:
    • Renewing the existing loan
    • Refinancing with another institution
    • Retaining the policy by paying the loan balance on or before loan maturity
    • Researching settlement options
    • The policy owner is under no obligation to pursue any particular course of action at the end of the loan

Interest rates and loan terms vary and are extremely competitive in excess of two years.

Contact information:
Bill Friend, Partner
866.FRIEND.0 (374.3630)  

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