Ensuring Your Bank is Always Protected in a Life Insurance Premium Financing Transaction
Premium financing creates a unique opportunity for your bank
Properly designed life insurance can be an effective tool for addressing important personal and business planning objectives, including spousal protection, wealth transfer, tax planning, liquidity needs, business succession, key employee retention, and charitable planning.
Financing life insurance premiums can be a great way for a family or business to acquire the amount of insurance they need by borrowing money from a bank to pay the policy premiums.
Premium financing creates a unique opportunity your bank to loan money to strong, established individuals and companies. However, your bank needs to understand how the life insurance polices should be structured to so your bank can protect itself and be fully collateralized at all times, in case things do not work out as anticipated.