Charitable Planning

One of the most important attributes of premium financing is the advantage of creating and enhancing altruistic benefits. Global citizens are becoming increasingly aware of civic obligations, particularly once they feel their family's wealth is secure. Charitable giving is a key component of a significant portion of the plans the program implements. As a consequence of premium financing of life, insurnace has been directly responsible for the actualization of hundreds of millions of dollars of gifts to universities, medical clinics, and churches both domestically and internationally.

Examples

1) 56-year-old Client - Committed a $5 million donation to a specific university over a ten-year period.

By financing a life insurance policy using the original gift of $5 million dollars as collateral in the financing program, this client now was able to create a $50 million policy for the foundation.
The client was able to keep the $5 million over time as the needed collateral was reduced as the cash value in the policy grew to cover what the lender needed for collateral purposes.

2) 66-year-old Husband, 53-year-old Wife - Wanted to create a $100 million endowment to a specific charity.

Purchased an $80 million survivorship life insurance policy in which net death benefit exceeds $100 million at projected life expectancy.
Charity recognized the gift of $100 million today.
The transaction was financed, which eliminated a drain on the clients' balance sheet.
The endowment benefit was almost 20x what was required in collateral.

3) 59-year-old - Desired to make a $20 million endowment gift along with $250,000 annual living benefit.

Insurance policy structured to provide a minimum of $20 million endowment to charity.
After the tenth year, cash value build-up supported annual cash distributions of $250,000 payable to the charity for the next fifteen years.
Premiums and interest were financed.
The client's participation was simply posting collateral.
Personal assets remained on the client's balance sheet.