The Surprising Versatility of Premium Financed Life Insurance
See the entire article in Today’s Practice.
“Life insurance premiums are just too high for what I need.” It’s afternoon in Arizona, relaxing on the veranda with a view of the golf course, Dr. Carolina Hong, Cardiologist, age 45 shakes her head.
“The premiums are high,” Dr. Joseph Percival, a 56 year old Neurologist, took a sip of iced tea, “what if I told you there is a way to get the same coverage for a fraction of the out-of-pocket cost?”
Dr. Hong: “I’m listening.”
“I was paying $97,506 per year for 10 million dollars in death benefit. It was a huge expense, but I had to cover my family, you know my twin girls are 12 years old now.” Dr. Percival explained, “I found a way to get the same coverage for only $55,000 per year, for just 15 years, and my wife and girls will be covered for the rest of my life. That frees up my money to invest. And…after seeking guidance and counsel with my attorney to confirm the possibility of the benefits…it may even provide the added bonus of asset protection.”
“I just missed out on a real estate opportunity, we really should play golf more often!” Dr. Hong leaned forward, “What if I need life insurance to cover my business partner in case I die before him, or vice versa? Would this work for me?”
“Yes. It may be ideal, but it’s not for everyone.” Dr. Percival nodded.
Dr. Hong raised her eyebrows. Why haven’t I heard about this before? “Tell me more.”
What is Dr. Percival talking about?
He is referring to Index Universal Life with leveraged premiums.
It’s not for everyone.
But if it is for you:
- It offers permanent insurance at a fraction of the out-of-pocket cost, freeing up your money for investments.
- Depending on your location and particular situation it may offer asset protection.
- If structured and funded properly, it could offer you tax-free income for life.
- Depending on your situation, the payments may be tax-advantaged.
An increasing number of doctors each year are finding that a properly leveraged and structured Index Universal Life plan is advantageous if they need a sufficient amount of life insurance, have an illiquid estate, and do not want to pay the high premiums required immediately out-of-pocket.
How does it work?
Contact me for a discovery session where I can explain this program in detail and see if it could be a fit for you. 702-498-2445
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