Premium Financed Life Insurance

One of the most effective estate planning strategies is using Premium Financed Life Insurance. What is it? It is borrowing money to pay for a very large life insurance policy.

1. It’s like taking out a loan to pay for a big life insurance policy. Instead of using your own money upfront, you borrow money from a bank or lender to pay the premiums (the cost of the insurance). Over time, the insurance policy can grow in value, and you use that growth—or other money you have—to pay back the loan.

2. Supplementing Retirement Savings: Certain types of life insurance, like permanent policies with cash value, can provide supplemental funds for retirement or emergencies.