Michael Moore discusses how life insurance premium financing can benefit a high-net-worth investor.
Listen to the interview on the Business Innovators Radio Network:
Life insurance premium financing can be an excellent financial strategy for high-net-worth investors. Premium financing allows these individuals to obtain the large life insurance policies they need, with little impact to current assets and cash flow. By borrowing funds from a lender, the investor can pay a smaller interest payment vs. a larger non-financed premium payment.
Michael explained: “The ability to obtain large policies without outlaying significant sums of cash upfront can provide several advantages for high-net-worth investors. For example, by utilizing premium financing, investors may take advantage of the savings between smaller interest payments vs. larger non-financed premium payments and reinvest those savings in their preferred financial vehicles. Also, life insurance contracts often offer tax advantages that can provide additional savings for the investor.”
Overall, premium financing is an attractive option for high-net-worth investors looking to maximize their cash flow while still obtaining substantial benefits from life insurance policies. By leveraging existing assets and taking advantage of discounts and tax advantages, premium financing allows individuals to acquire large policies without making significant out-of-pocket payments. As such, it can be a valuable financial tool for those seeking to protect their wealth and plan for long-term security.
About Michael Moore
Michael welcomes 2023 as his 26th year in the financial services industry. Michael started his career with a small brokerage agency in Tustin, California. After several years there, he moved on to CPS Insurance and managed their underwriting department. As his experience and knowledge of insurance continued to grow, he accepted a position at First Financial Resources, where he worked diligently to rebuild and maintain the company’s elite position in the financial services industry. In 2007 Michael was hired by a subsidiary of AIG (AI Credit) to help build their financed life portfolio.
In 2009 that portfolio was acquired by Wintrust under First Insurance Funding. As Vice President of Sales, he was a leader in creating a loan portfolio of over $300M in financed premiums. In the summer of 2015, Michael worked for a short time with a small firm out of Phoenix before establishing his own business operating as CDP Insurance Services, Inc. CDP is a boutique firm specializing in leveraged insurance strategies.
Learn more: https://www.cdpinsurance.com