Premium financing is not typically implemented with average life insurance policies. This strategy is in most cases utilized with high net worth clients who are in the process of obtaining large face amount policies.
This can include stand-alone policies that are purchased for personal or business reasons, and it can also encompass those plans that are being purchased in a trust for estate planning purposes.
Instances Where Premium Financing Should Be Considered
There are a number of instances where life insurance professionals may not consider using a premium finance arrangement. However, premium financing should definitely be considered for those clients who are not able to gift the entire life insurance premium amount to an irrevocable life insurance trust (ILIT) by using their annual gift tax exclusion. This should be considered, for instance, if the policy holder has exhausted their lifetime credit – as large annual gifts to an irrevocable life insurance trust can cause a gift tax as to be as high as 50 percent.
Another example entails a situation where the pre-tax cost that is associated with the life insurance premium is high due to income tax or capital gains tax. In addition, wealthy clients may also benefit from financing their life insurance premium if there is a lost opportunity cost that may be associated with using their current liquid funds for paying the premium as versus using those same dollars for something else that may provide them with a better or faster return.
In any case, you will likely receive a great amount of benefit by partnering with a premium finance company in that these entities are well versed in educating the client on how and why it makes sense to use this form of life insurance premium payment method. This should ultimately lead you to more policy sales.
Some of the Top Premium Financial Capital Providers in the United States
Although the premium financing niche is still relatively new and unknown to many, there are a number of top companies that are active in the industry – and a number of these firms possess several decades of experience in the field.
While there are premium financing specialists located throughout the nation, it is typically best to work with a company or individual that is both licensed and has a location in the clients’ state of residence.
In this manner, you can be more assured that the financing arrangement will comply with the specific state’s rules. In addition, this will offer much more convenience should any in-person meetings be required with the client / policy holder.
To find your next premium financing partner, contact any the companies that are listed below. These firms can provide you with the guidance that you need, even for those hard to place deals. Help can typically be found via phone and online chat, and quotes can usually be obtained by submitting a no obligation application directly on the companies’ websites.
Capital Premium Financing, Inc.
Capital Premium Financing, Inc. provides life insurance premium financing solutions for a number of different types of commercial insurance policies. It is considered to be a top rated premium finance company in the industry and its reputation makes that clear.
Established in 1988, the company has well over two decades of experience in the specific area of providing necessary cash to fund high face amount insurance plans. Recognized as a leader in the field, Capital Premium Finance can offer you the support you need to get your premium financing deals done right. For more information visit:
Capital Premium Financing, Inc.
12235 South 800 East
Draper, UT 84020
Or
2931 Kerry Forest Pkwy #103
Tallahassee, FL 32309
Customer Service / Operations: (801) 571-0775 / Toll-free: (800) 767-0705
Agency Relations / Quotes by Phone: (877) 730-1906
info@capitalpremium.net / agencyrelations@capitalpremium.net
www.CapitalPremium.net / www.capitalpremiumfinance.com
Premium Financing Specialists, Inc.
Premium Financing Specialists, Inc., now known as Imperial PFS, offers a number of services to clients and potential borrowers. IPFS was created via the combination of both Premium Financing Specialists, Inc. and Imperial Credit Corporation, two of the strongest premium finance companies in the premium financing industry.
The firm is able to successfully provide online quoting directly from its website as well as allow access to account information, electronic signatures, and payment option – all conveniently available on the company’s site.
In the specific premium finance arena, Premium Financing Specialists, Inc. provides direct access to premium finance loans in addition to premium finance agreements via insurance companies and agencies, as well as through general agents, for the purpose of financing commercial property and casualty insurance premium loans.
For more information on Premium Financing Specialists, Inc., go to:
Premium Financing Specialists, Inc.
Headquarters
8245 Nieman Road
Suite 100
Lenexa, KS 66214
(816) 627-0500
Arizona Premium Finance Company
Arizona Premium Finance Company specializes in financing the premiums for a wide variety of insurance policy types. Through the firm’s website, you can send an instant information request in order to obtain policy quotes as well as additional details on how to partner with the firm in getting your clients the funds that they need. For more information, visit:
Arizona Premium Finance Company
12406 N. 32nd Street
Suite 110
Phoenix, AZ 85032
Toll-free: (800) 873-2732
adminept@apfcinc.com
http://www.apfcinc.com
First Insurance Funding Corp.
First Insurance Funding Corp. is one of the largest independent insurance premium companies in the United States. The company specializes in putting together customized premium loan packages that are uniquely based upon the specific needs of each client. Even those hard to place cases may find the ideal solution with First Insurance Funding. For additional details, go to:
First Insurance Funding Corp.
P.O. Box 66468
Chicago, IL 60666-0468
Toll-free: (800) 837-3707
http://www.firstinsurancefunding.com
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