R-Squared is what we call our new, turn-key life insurance premium financing strategy. It is designed to allow clients and advisors a simplified way to provide their clients with higher retirement income as well as more life insurance death benefit.
It is structured so that the financial commitment from your client is much lower than traditional financing programs. It does this by utilizing a trust structure to pool multiple premium financing loans together.
Want to learn how R-Squared is different than traditional life insurance premium financing? Access a sample proposal to the right:
R-Squared utilizes a trust structure, this means a trust owns the policy and borrows the money. This is advantageous for the client for 2 reasons:
R-Squared is designed to be a 10-year premium program. The client (typically) pays for 10 years, whereas the financing occurs in years 2-10. At the end of the 10th year the loan is paid off using policy cash values. R-Squared is designed so that no additional collateral is required. This approach is more conservative when compared to traditional financing arrangements, yet it provides significant benefits.
Traditional premium financing arrangements typically have an additional collateral requirement. As mentioned above, the R-Squared turn-key premium financing is designed to have NO additional collateral, this means your client is only risking the money that they have paid personally.
The R-Squared program is designed around our experience in the life insurance business. We understand clients sometimes change their mind or need their funds in other areas of their life or business. Therefore, we have designed R-Squared to be flexible. If a client decides they no longer want to participate in the program or cannot make a payment. The trustee will pay off the client’s premium financing loan using the surrender values from the policy and distribute the policy back to the client. This will leave the client with their policy and the remaining cash values. This gives clients more flexibility and options should their situation change.
We previously hosted a webinar explaining all the details you need to know about this turn-key premium financing strategy. Please input your information below to view the recording:
Planning for the future financial security for your clients and their heirs requires thought. We work with you to establish both loan design and a funding strategy. If this situation sounds familiar, you more than likely have clients that are a perfect match for our turn-key premium financing program: R-Squared. Let’s work together to determine the best strategies to improve your client’s financial situation