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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