Keep Capital at Work, and Still Fund the Coverage Your Client Needs
Premium financing can help high-net-worth clients fund needed life insurance while keeping capital at work in a business or investment strategy. But borrowing costs, collateral requirements and repayment obligations deserve as much attention as the potential benefits.
At Griffin, we start with one question:
“Would this client still need the insurance if financing weren’t available?”
If the answer is yes, the next step is to compare funding options, not assume financing is the right choice.
Our full article walks through how we evaluate premium financing: looking past net worth to financial flexibility, stress-testing collateral and repayment, and how NextPoint Solutions and the Repredict platform created by Bob Strauss, JD, help advisors compare financed and non-financed approaches while the advisor keeps the client relationship.
Have a client considering premium financing, or an existing arrangement that deserves another look? Reach out to our team, call (919) 981-6355 or email our team about a case.
For financial professional use only. This material is educational and is not individualized insurance, lending, tax or legal advice. Premium financing involves borrowing costs and financial risks, including possible additional cash or collateral requirements. Guarantees are backed by the claims-paying ability of the issuing insurance company. Features and availability vary by carrier and state.
