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Get the Coverage You Need Without Paying the High Premiums
Many high net worth ($3,000,000 and above) senior citizens find the need to purchase a high face value life insurance policy to protect their family or for the purpose of estate planning. Individuals who are in possession of major assets and do not wish to liquidate their properties and investments to pay expensive life insurance premiums now have the opportunity of having their premiums financed through a Carrier Approved Life Insurance Premium Finance Program. By having a major bank pay the life insurance premiums, the insured frees up his/her assets to be used more proficiently in other places. With no, or very little out of pocket expenses, personal guarantees and minimum financial risk a qualifying person can grant millions of dollars to his/her family or favorite charity in the form of a death benefit. Using a Carrier Approved Life Insurance Premium Finance Program also lowers the out of pocket expenses and potential gift taxes.
By working with Arbel Life, LLC you'll receive access to a network of Life Insurance Carrier Approved Programs created by well known insurance companies in the United States.
Arbel Life, LLC works with a network of lenders to finance the programs that are approved by the Insurance Companies.
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- 70 years of age or older (Male and Female)
- Above average health condition
- Minimum net worth of $3,000,000
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Recourse premium financing is now the most accepted type of carrier approved premium financing program. The main distinction between partial and non-recourse is an additional collateral requirement on top of the policy that must be posted by the insured. On top of the policy, an additional collateral amount of 25% to 100% of the current outstanding loan value in the form of personal guarantee or letter of credit is required by the premium finance company. Carrier approved program that the insurance companies have reviewed the programs and have generally approved the premium finance companies program structure and agree to issue policies under the program. The programs come with a variety of loan terms of 2, 3, 5, 7 and 10 years in addition to a lifetime loan. The rates vary but are generally variable or fixed and tend to be lower than the non recourse loan offered by some investors and 3rd parties. Partial-recourse programs are usually available to individuals insured who are over the age of 70 with at least a $3,000,000 in net worth.
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- No need to execute high performing investments
- Maintain cash in hand
- Maintain current cash flow
- Part of an estate tax plan
- Provide a legacy benefit
- Full utilization of your insurability
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- Submission of informal application and HIPAA form to release medical information
- All information is gathered and submitted to insurance companies
- Insurance companies rate the insured
- Apply to various premium finance companies
- Life insurance policy is issued into an irrevocable life insurance trust (ILIT).
- Borrower will name beneficiaries of the trust which may include a spouse, children, other natural heirs, business partners or a charity.
- Upon securing the required collateral the initial loan amount is dispersed to the ILIT which in turn pays the first premium on the life insurance policy. As future premium payments to the insurance company are required, the premium finance company continues to disperse funds according to the premium schedule.
When the loan matures the policy owner may have a number of choices including continuing to finance the premiums, repaying the loan plus interest and keeping the life insurance policy or selling the policy in the secondary market for life insurance using the life settlement method.
Should the insured pass away during the financing period, the ILIT will claim the death benefit and disperse the proceeds less the outstanding loan value to the beneficiary.
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