The purpose of a life insurance policy is to protect and preserve your assets and income in case you or your family suffer a loss (i.e., lose your income, loss of a family member’s income, the inability to work, or other reasons). But did you know that you may be able to use a life insurance policy to provide tax-advantaged? Did you also know that you may be able to have national and well-known banks assist in the funding of your premiums to provide a larger cash value? Think about this: Many people have (or had) a mortgage to buy a home, but have you ever considered a similar concept to fund your life policy for more cash growth?

Using Premium Financing to Increase Cash Growth

The ability to use banks to help fund your policy premiums can be accomplished using a concept known as “premium finance.” At this point, you may already be asking yourself: How is this possible? How much can I get from the banks to fund my retirement? Are there loan documents? What are the risks? What are the terms? All great questions, and we’ll offer some information to help you understand the concept of premium finance and tools to conduct further research.

Did you know that you have a valuable asset which is often overlooked and may not be included in conversations regarding your financial portfolio?  It’s your life insurance policy. Many people are not aware that a life insurance policy is an asset which can be sold with some of the terms being set by the owner.   

All too often life insurance owners surrender their policy to the insurance company instead of getting a quote in the “secondary” market for what it’s actually worth.  The market value of a life policy can be as much as eight times more than the surrender value!  If you have a life policy which is unwanted, unneeded or has become unaffordable, you can get a quote for the cash value in the open market.  Typically, you will have several choices as to the disposition of your policy.