Premium Finance

Available Programs

IMS Associates and its sister companies have one of the largest portfolios of Life Insurance Premium Finance products available in the market. We look at our products as falling into five distinct categories based on the client's age, insurance product choice and terms of the lending agreement. IMS will perform a preliminary case evaluation to determine what products and programs are best suited for each client.

Traditional Financing

Traditional finance plans are the most flexible financing products available and the interest rates tend to be the most competitive. These products are best for developing estate planning and gifting strategies for high net worth individuals. The insured is required to post 100% of any needed collateral in most Traditional Premium Financing deals.

Permanent Financing

This product is great for clients looking to obtain coverage in the most cost efficient manner while limiting the insured's over all risk in the transaction. For very little money out of pocket an investment bank will commit to finance the life insurance premiums for the life of the insured. The policy's death benefit serves as the primary form of collateral for this premium finance program. The client is only required to post a 25% Personal Guarantee for the first 60 months. Case Example

Index UL Financing

Utilizing borrowing power by savvy insureds to purchase an Indexed Universal Life policy can be a great way for younger professionals and entrepreneurs to obtain the life insurance coverage they need. The concept for using life insurance premium financing with an Indexed UL is exciting because it allows an insured the opportunity to purchase life insurance that has the potential to accumulate a tremendous amount of cash value. The projected high cash values in these contracts allow us to design innovative and effective premium finance plans.

Hybrid Financing

Our hybrid products are attractive for life insurance plans, which demand flexible terms and have short to mid-term planning horizons. The available exit strategies from a hybrid loan are numerous and the financial underwriting is generally less cumbersome than Tradition Financing making hybrid premium finance notes an attractive option. The collateral on a hybrid deal is usually met in the following manner: The policy itself serves as 75% of the collateral needed on the outstanding loan balance. The remaining collateral is covered in the form of a Letter of Personal Guarantee or Collateral posted by the insured for the remaining 25% of the outstanding loan balance.

Inforce Financing

IMS now works with a number of banks to provide liquidity and re-financing options for existing life insurance policies. Options range from taking equity out of a policy and permanent inforce financing to refinancing an existing loan on a policy.

Disclaimer

Each listed program will have a separate list of carriers who have approved the products listed above. IMS will only submit a case to a carrier with full disclosure of the nature of the premium finance program. IMS does not advocate or facilitate any Stranger Owned Life Insurance, does not offer any Non-Recourse loans, does not offer any client inducements, does not set up pre-arranged life settlements, and does not facilitate the sale of any life insurance policy still in the two year contestability period.

Any such statement herein was written to support the marketing or promotion of the transaction(s) or matter(s) to which the statement relates. IMS does not provide any tax advice. Any tax statement herein regarding any US federal tax is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding any penalties. Each taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.