Want Others To Pay for Your Life Insurance Policies?

Do you need life insurance but do not want to use cash or liquidate high earning assets to pay for it?

Well demand for premium financed life insurance policies by high income and high net worth folks has skyrocketed mainly because of the potential for drastic tax changes in the coming years. Given the political, economic, and tax environment, premium financing strategy takes on an even greater level of importance for estate planning, retirement, and business planning.

You see, a properly designed and maximum funded permanent Life insurance policy, as an alternative asset class, is one of only few remaining true triple tax free investment strategies.

While still uncertain, there have been proposals to increase the top tax bracket and long-term capital gains taxes to nearly 40%. At the same time, the estate tax gift exemption, which is currently at over $11 million, is set to expire in 2025 and revert to $5 million with proposals that the current administration may decrease it even sooner to $3.5 million with a top tax bracket of 45% and eliminate stepped up basis on Capital Assets at death. All of these potentialities further increase the benefits of using premium financing to generate tax-free income streams and/or tax-free death benefits.

Another reason we have seen skyrocketing demand for premium financing is that interest rates are at all-time lows and folks can lock in the low rates for many years while they are low, just as people are refinancing their homes to take advantage of these low interest rates.

Using this strategy could potentially increase our tax free retirement income as well as children’s inheritance by 50% and more, while at the same time providing liquid and tax free dollars to pay majority of potential estate taxes.

To learn more on this strategy please message me via LinkedIn or text me at 973 580 6752.