Premium Financing Life Insurance: A Strategy for High-Net-Worth Individuals

Premium Financing Life Insurance

Premium financing life insurance is a strategy that allows high-net-worth individuals to purchase large life insurance policies without liquidating assets. Instead of paying premiums out-of-pocket, the policyholder borrows funds to cover premiums, using the policy as collateral. This approach preserves capital and can offer significant estate planning benefits. (Premium Financing Life Insurance: A Strategy for High-Net-Worth Individuals)

Key FAQs

  • What is premium financing in life insurance?
    • “Premium financing allows individuals to borrow money to pay life insurance premiums, often for large policies, preserving their liquidity.”
  • Who should consider premium financing life insurance?
    • “Premium financing is ideal for high-net-worth individuals looking to secure substantial life insurance coverage without disrupting their investment portfolios.”

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