Your clients have worked hard to create significant assets for their families, and perhaps even a business, and it’s important to protect them adequately. Clients want to be assured their family can maintain the lifestyle they have become accustomed to without the fear of running out of money, regardless of their health situation. If they are business owners, they may want to protect key people within their company, fund a buy-sell agreement, a deferred compensation plan or other selective benefit plans. Regardless of their motivation, life insurance plays a significant role in protecting their interests.
Life insurance is a valuable financial planning solution that often requires large premium payments. Many business owners and high-net-worth individuals haven’t invested as much as they should or could in life insurance. Cash flow can become an issue – many people find themselves asset rich, but cash poor. Their assets are illiquid. However, if there is an issue when it comes to purchasing life insurance, it’s more than likely to be an issue for your family or business if you pass prematurely. Learn about the opportunities available to implement a solid financial plan.
Business owners and high net worth individuals with money tied up in illiquid assets or demand a higher rate of return
Premium financing is a cost-effective and tax-effective method of paying life insurance premiums once the need for life insurance has been established. Some of the benefits of premium financing include:
Working with your financial advisors, you will determine the need for and the amount of insurance.
Before you finalize a premium financing arrangement there are important considerations to review and discuss with your tax, legal, and financial advisors.