ADVANCED MARKETS

Premium finance opportunities for large-case life insurance

When a client has the need and the net worth for substantial coverage, premium finance lets the premium get funded through a third-party lender instead of out of pocket. It is one of the advanced-markets strategies our team helps you design and place.

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01 · WHAT IT IS

Premium finance, in plain terms

Originally published January 2019. Premium finance is an advanced-markets approach where a third-party lender pays the premiums on a large life insurance policy. The client keeps assets working elsewhere instead of liquidating them or interrupting cash flow to fund the coverage out of pocket. The policy, along with other pledged collateral, secures the loan.

Advanced markets Large-case design Third-party lending

02 · WHERE IT FITS

The clients this strategy serves

Premium finance is not for everyone. It fits clients who carry a genuine need for large coverage and the balance sheet to support the arrangement. A few of the planning contexts where it comes up:

BOBusiness owners

Coverage that supports succession, buy-sell, and key-person needs without pulling capital out of the business.

EPEstate planning

Funding legacy and liquidity objectives while keeping the client's own assets deployed toward their long-term plan.

PPPrivate pension funding

Structuring life insurance as part of a broader private pension and retirement strategy.

03 · HOW WE HELP

Design the case with our advanced-markets team

Premium finance cases take careful design. Underwriting, illustration, collateral, and lender coordination all have to line up before the case is placed. Brokers Alliance has supported independent producers on advanced-markets work since 1982, from our home in Fountain Hills, Arizona. Whether you write as an agent, an agency, an IMO, an FMO, or a BGA, our team helps you evaluate the fit and build the case.

Independently owned since 1982 Fountain Hills, Arizona Case-design support

Ready to look at a premium finance case?

Bring us the client scenario and our advanced-markets team will help you work through whether premium finance is the right fit. Reach us at (866) 872-9394 or start below.

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