Life Insurance Premium Financing
At Legacy25 Capital, we provide strategic premium financing solutions that allow high-net-worth individuals and business owners to maximize liquidity, preserve estate assets, and optimize wealth management strategies, while maintaining life insurance coverage.
What Is Life Insurance Premium Financing?
Life Insurance Premium Financing allows policyholders to borrow funds to pay insurance premiums rather than liquidating assets or diverting investment capital. This financing strategy enables clients to retain coverage while leveraging capital for other financial objectives.
Key Benefits of Premium Financing:
- Preserve liquidity and avoid using personal funds to cover high-value policy premiums
- Maintain estate planning advantages and ensure policies remain intact for long-term asset protection
- Maximize investment opportunities by utilizing borrowed capital for higher-yield investments
- Leverage tax-efficient strategies by structuring financing to optimize estate and tax benefits
Legacy25 Capital’s Premium Financing Solutions
- Loan structuring with recourse and non-recourse financing tailored to policy type and borrower needs
- Flexible repayment options aligning loan terms with cash flow and investment strategies
- Underwriting advisory, ensuring competitive loan terms through lender relationships
- Customized financing strategies designed for estate planning, wealth preservation, and business applications
Structuring Options
- Interest-Only Loans – Designed to minimize out-of-pocket costs while maintaining liquidity, with principal repayment deferred until policy maturity or asset liquidation
- Collateral-Based Loans – Secured by the policy’s cash value, additional personal assets, or a letter of credit to reduce lender risk
- Hybrid Financing Structures – Combining premium financing with investment leverage, allowing clients to generate returns while keeping policies intact
- Exit Strategies – Flexible repayment options including policy cash value withdrawals, investment proceeds, or structured refinancing
Underwriting Criteria
- Minimum Net Worth Requirements – Lenders typically seek clients with high-net-worth status to ensure repayment capacity
- Policy Type & Carrier Strength – Strong, highly-rated insurance carriers improve financing terms and lender confidence
- Loan-to-Value (LTV) Considerations – Financing amounts are generally structured at up to 90% of premium costs, depending on policy structure and borrower profile
- Interest Rate & Loan Terms – Pricing is based on borrower creditworthiness, policy cash value, and lender risk appetite
- Exit Planning & Liquidity Analysis – Lenders assess the borrower’s liquidity profile and investment strategy to structure an efficient repayment plan
Whether you’re securing liquidity, optimizing estate planning, or enhancing financial flexibility, Legacy25 Capital delivers premium financing solutions that align with your long-term financial goals.