Premium Financing
Why Consider a Premium Financing Strategy?
You recognize the vital role life insurance plays in helping you achieve your planning objectives. However, adequate life insurance coverage for high-net-worth individuals tends to require significant premium payments.
You may need to liquidate investments to cover the cost, potentially exposing yourself to gift or capital gains taxes and reducing your ability to take advantage of growth in your portfolio.
If the idea of liquidating assets to acquire a life insurance policy doesn’t appeal to you, you may want to consider a funding alternative.
Using an alternative means to acquire life insurance through your Legacy Trust, you may be able to maximize the benefit of the life insurance policy while minimizing your exposure to taxes and leaving your current investment strategy intact.
Benefits of Alternative Funding
High Performing Assets Kept Intact
With a premium funding alternative, you can acquire the life insurance coverage you desire without liquidating high-performing investments and incurring attendant income taxes.
Out-of-Pocket Expenses
With a premium funding alternative, your required out of pocket expense may be eliminated depending on the strategy employed.
Reduced or Eliminated Gift Tax Liability
You may be able to reduce or potentially eliminate any gift tax liability associated with the funded policy.