Here on the blog we aim to offer you helpful intel into what you could be doing for yourself and your loved ones after retirement. We spend our lives working so hard to earn and invest, why not take advantage of every opportunity to ensure we get the most out of what we earned? Life insurance has a sort of stigma attached to it, but many people are not aware of the many things you can do to put yourself in a better position with the IRS with respect to Life insurance.
Premium Finance Intelligent Leverage is one way High Income Earners can do just that. Here’s How.
What Is Premium Finance Intelligent Leverage?
Premium financing is a method for paying for life insurance premiums using loaned funds instead of current income or proceeds for the sale of assets. Premium payments are reduced to either loan interest, or in many cases, annual maintenance fees only.
How Does It Work?
An individual or Trust applies for life insurance coverage and arranges for a premium loan. Depending upon lender requirements, additional collateral may need to be pledged, they do not move and any income from assets continues to be received by the owner. In many cases, annual interest can be capitalized which reduces out of picket expense eve further.
Who Should Consider Premium Financing?
Any individual earning high income, especially business owners and professionals.
- Any individuals who need significant amounts of life insurance coverage but do not want to sell or move assets to support purchase
- Any individuals who need to preserve their tax gift exemption for other uses
- Any individuals who want to minimize their annual insurance outlay
Want to Learn More?
You can get a triple snapshot case study example by simply checking out the MBK Beat Case Example Podcast! We break down 3 different applications of how 3 different real life cases have applied premium financing to their personal situation, and why. If you want to talk to Mark about your options, please don’t hesitate to reach out via our contact form or by calling (716) 855-1600! Let’s get to work to help you earn more after 65!