Third party premium finance insurance can be defined as a strategy where the life insurance is purchased utilizing a third party (bank) funding. There are several advantages to this:

  • Reduces your actual cost by insurance by approx. 40%
  • Helps preserves gifting capacity for estate planning
  • Enables the purchaser to retain more money in his business

This is known as “Intelligent Leverage”.

Our strategic partners have placed over $40 Billion of permanent life insurance with a financed premium portfolio that exceeds $4 billion. We have achieved this unprecedented success and reputation by using a thoughtful and conservative approach we call Intelligent Leverage. With potential changes in both income and estate tax codes on the horizon, clients need ways to plan despite the uncertainty.

Future estate taxes are very uncertain but 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 rumors swirling 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 TPF to generate tax-free income streams and/or tax-free death benefits. We have access to multiple lenders with exclusive loan rates that are the best in the industry. Our newest loan offerings include fixed rates and caps up to 10 years and variable rates with unbeatable spreads.

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