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Client Profile

Typical clients are high net worth individuals and families who have a need for large amounts of life insurance as part of their wealth creation, estate, charitable giving, and/or business planning. The average client is 40-65 years-old with a minimum net worth of $5 million-plus. Clients choose to finance these policies so that their cash flow and/or investments need not be interrupted or liquated to fund the policy. This protects the client's estate and builds wealth tax-free while the client's investment portfolio can continue to grow without interruption and the client's estate is protected at death.  

Premium financing works well for the individual who: 

  • Needs personal life insurance for estate planning or business needs. 

  • Has significant wealth including highly appreciated assets. 

  • Doesn't find traditional methods of paying for life insurance appealing. 

  • Would like to purchase life insurance without liquidating other investments or otherwise changing their normal cash flow. 

  • Presently has trust-owned life insurance and would like to reduce annual gifting requirements or save having to pay possible gift taxes in order to purchase the life insurance their estate requires. 

  • Is interested in the most tax-efficient method of purchasing life insurance in order to benefit their heirs with little to no out-of-pocket outlay. 

  • Is willing to accept some risk in order to retain capital and continue to be invested.  

The insured client must: 

  • Be worth an absolute minimum of $5 million dollars. 

  • Have an annual income of at least $250,000. 

  • Have ample liquidity (or protected liquidity). 

  • Have a personal financial statement substantiated by a public accountant or other qualified sources. 

  • Be acceptable to the lenders' "know your client" requirements. 

  • Meet all underwriting criteria of the insurance company. 

  • Provide signatures on initial forms (i.e. HIPPA form and insurance application). 

  • Undergo a medical exam. 

  • Provide requested financial information to established net worth. 

  • Provide follow up information as needed for medical and financial underwriting. 

© 2020 by RP America Life Services, LLC.

www.rpalifeserices.com is for informational purposes only. Nothing herein is intended to, nor does it, provide legal or tax advice to potential participants. Potential participate should consult with their personal legal and tax advisors before making any tax- or legal-related decisions. Although reasonable care has been applied to ensure that the statements in this document are accurate, no warranty, express or implied is made as to the accuracy of the information contained at www.rpalifeservices.com. Potential participates should carefully consider the financial implications, tax consequences, risks, and fees and expenses before entering into a financing structure. Economic, legal, and other risks, uncertainties and contingencies may cause the structure to perform materially different than anticipated. 

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