New Proprietary Premium Finance Life Program
If you sell life insurance, if you have affluent clients, if you want to have affluent clients, this is a program you really must learn about.
To sign up for more information or to watch a WEBINAR about this program on recording, click on the following link:
Advisors love Premium Financed Life (PFL) cases because the premiums and the commissions are large. However, there are several issues with most PFL structures:
1) Clients have to personally guarantee some portion if not all of the loan
2) Clients have to put up significant collateral
3) Large loan spreads on rates hurt the financial viability of the plans
The other problem with PFL is the greed of agents and IMOs. Agents put forth totally unrealistic illustrations provided by IMOs to make the sale (which leads to many unsuitable sales).
NEW Premium Financed Life Program
While I don’t like most premium finance programs in the market, I recently learned about one that blew me away. The opportunity for success with this structure is better than any PFL structure I’ve seen in the last 20 years. Benefits such as:
1) No personal guarantee loan option
2) 100% cash surrender value in year 1
3) No premiums paid by client
4) Option to accrue interest (although it is recommended to pay it the first few years)
Best IUL Specs-many premium finance structures use IUL (Indexed Universal Life). This is done because the policies are trying to build cash to lessen the net amount at risk and to be able to borrow tax-free from the policy. What do you think of the following?
-Annual IUL point-to-point caps as high as 14.5%
–Commission trails for agents that last for 25 years (no this is not a typo!)
With high caps and a 100% cash surrender value in year one, the opportunity for growth in the policy is significant (and advisors will like getting paid trail commissions for 25 years).
What does that mean? It means that you can only get this program from one source. If you are not aware of this program, then the IMO you are working with can’t offer it. So, taking this newsletter and forwarding it to your IMO and asking them for information won’t help. They won’t have it.
OPPORTUNITY-what does the fact that this is a new program coupled with the fact that it’s a proprietary program mean to agents? OPPORTUNITY!
Why? Because advisors who are allowed to sell this structure will NOT have any real competition in the marketplace.
Who are candidates to use PFL?
-Estate Tax Relief (for those with estates over $25 million)
-Charities who want to pitch donors on a non-recourse/no money out-of-pocket plan
-Key Person Policy
-Employee Retention Strategy
-Income Replacement (tax-free borrowing in retirement)
I’m very excited about this program for those interested in helping clients with buy/sell plans (www.buyselleducation.com for education and a free video).
Are you ready to learn more? If so, just click on the link at the top and get ready to learn about the most exciting life insurance sales program I’ve seen in a long, long time.
Roccy DeFrancesco, JD