Traditional Premium Finance: The Premise and the Background

The acquisition of life insurance requires current liquid assets to meet the significant cash flow needs, which can preclude an individual from obtaining the life insurance coverage needed. In addition, because of the tax-free nature of the life insurance benefit, the premiums used to fund the policy are considered a gift to the beneficiaries of the policy and thus exposed to gift tax. These tax implications can greatly reduce the long-term benefit of the policy and increase the required liquidity needed to fund the solution.

GBFG-TPFPremise.pdf download View | Download
Categories: White Papers