insurance quotes

High Net Worth Life Insurance

2008/05/21


Premium finance allows people with high net worth to purchase life insurance without liquidating other profitable investments or Cheap Breitling Replica otherwise changing their normal cash flow situation. Through this innovative financial arrangement, qualified clients borrow the funds to pay the life insurance premiums. They protect the net worth they have built up and pass their financial legacy to future generations.
 
Eligibility for Premium Financing
 
Because of it complexity, premium financing is not for everyone. If you have financially sophisticated clients with Panerai Replica skilled tax and legal advisors, this strategy may be appropriate for them. Also, your clients must meet certain eligibility requirements. To qualify for a premium financing arrangement, clients should demonstrate the following;

    * A need for life insurance.
    * Have a minimum net worth of $5,000,000 ($10,000,000 preferable) or more.
    * Have verifiable annual income in of $200,000 or more.
    * Have liquid assets sufficient to pledge as collateral for the loan.
    * Meet life insurance policy underwriting guidelines.
    * Commit to at least $1,000,000 in loans to provide premium.

How Premium Financing Works
 
The premium finance concept is simple your client borrows money to Rolex Replique Montre pay life insurance premiums. The actual transaction itself Panerai Replica Watches can be quite complex. For that reason it is crucial to involve legal and tax advisors in the process.
 
While each premium finance transaction is unique, every transaction consists of two separate financial instruments; a permanent fake breitling cash value life insurance policy, and a loan. The process occurs in two steps;

   1. The Life Insurance Policy The initial life insurance application process is similar to any other life insurance application. The life insurance company will complete medical and financial underwriting to determine if your client qualifies for coverage.


   2. The Loan Application

      After the policy is approved, a loan application is submitted to the lender for Cheap Breitling Replica approval. The lender will review your client's credit and financial status and decide whether or not to make the premium loans

      Once loan approval occurs your client's premium finance case is underway. The documents are then sent to your client's legal counsel to be executed, and the policy is funded.

Legal and Tax Considerations
 
Premium financing has tax implication in a number of areas
If you would like to learn more about Premium Financing of Life Insurance contact:

Jonathan Mittman

Metropolitan Advisory Group, LLC

212-332-7596

jmittman@gmail.com

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