Life Insurance Concepts and Design

Concepts and Design

1. Loan terms - five to ten year periods. Premium paid yearly according to the length of the funding period.
2. Accrual - Ability to accrue the interest on the loan for the duration of the policy.
3. Interest paid - Clients may pay all the interest on the loan, or they have the flexibility to pay a specified amount as determined by the client's cash flow.
4. Rollout - Over fund a policy to build up cash surrender value, so that you are able to payoff the loan, and have a policy that will last until age one hundred.
5. Refinance - Refinance current premium finance products. We would do this to better meet the client's needs, by matching client's cash flows with interest payment schedules.
6. Zero Out - Rolling the loan origination fee into the loan thus minimizing the actual out of pocket costs to the client.
7. Interest Rate Caps -
8. Collateral Needs Options - Assignment of Life Insurance Policy as collateral and if applicable, a first priority security interest in additional collateral acceptable to the Bank (cash, Stocks/Bonds, mortgage lien on wholly-owned residential/commercial real estate, Collectables)
9. Bridge Gap Funding - Bridge Gap Financing is a policy design that captures an individual's insurability now, while also providing the option to fully fund the policy in later years.