HOW IT WORKS
Premiums for the insurance policy are paid by the lender, while the policy cash values are used as collateral. The policy is designed to capitalize on the arbitrage between the crediting rate of a high cash value life insurance policy and the cost of borrowing. This positive arbitrage allows for sufficient cash build-up so that eventually the loan can be repaid while keeping enough cash in the policy to keep the policy in-force for life.
PFG works closely with clients every step of the way, from designing the insurance policy to maximize cash accumulation, to ensuring that the loan is approved. Moreover, we work with our clients’ advisors in establishing an irrevocable life insurance trust (ILIT) or LLC as the owner of the policy, and once the policy is issued, we monitor it on a yearly basis to ensure it continues to provide the benefits and efficiencies our clients’ desire.
OUR SERVICES
Premium Finance
Family and Wealth Protection
Life insurance is an essential component to an overall estate plan and can be used to address various financial needs including: income replacement, repaying…
Business Succession Planning
One of the key aspects of business succession planning is working out the financial pitfalls following the death of a business owner. If the business is a partnership…
Insuring Key Employees
In a closely held corporation there is typically one or more individuals who is vital to the success of the business. The loss of a valuable employee…
Term Insurance
Term Life insurance is the simplest form of life insurance designed to provide temporary protection at an affordable cost. Clients have the option of choosing…
Universal Life Insurance
Universal Life Insurance provides clients an affordable and efficient solution that combines the security of a permanent death benefit with the flexibility in premiums…
