Loan for Life Premium Finance Rescue

Partner with Harbor Life and provide your clients financial relief while keeping valuable life insurance policies intact

Premium Finance Revealed: Policyholders' Path to Overcoming Challenges

Premium finance is a tactic employed by affluent individuals to fund their life insurance policies through external financing. By acquiring loans from financial institutions, they can cover the premiums associated with their policies. This approach enables them to leverage their wealth and optimize their investment opportunities.

Premium finance can offer significant benefits to policyholders in low-interest rate environments. This strategy becomes highly advantageous as individuals can secure favorable financing terms for their life insurance premiums. However, it is essential to consider that when interest rates rise, the cost of financing premiums can also increase. This potential rise in costs may result in a less attractive proposition for utilizing the premium finance strategy.

Premium Finance Loan Rescue

Your Path to Financial Freedom

Experience a transformative solution for your current premium finance life insurance arrangement with our Premium Finance Rescue program based upon a “Loan for Life™”. Bid farewell to the challenges associated with interest costs, loan collateral requirements, and gain the security of a contractual death benefit.

Our program is specifically designed to assist policyholders facing difficulties with their premium finance loans. It involves the complete refinancing of existing loans, providing much-needed relief to policyholders. By participating in the program, policyholders can retain a portion of the original death benefit, ensuring ongoing coverage without further premium obligations. Embrace financial relief and safeguard your policy’s value with our Premium Finance Rescue program. It’s time to overcome obstacles and secure a brighter future for your life insurance coverage.

Key Benefits to the Loan for Life Premium Finance Rescue Program

Premium Obligation Relief

Offload premium payment responsibilities to our dedicated investor, providing policyholders with relief and uninterrupted life insurance coverage.

Contractually Retained Death Benefit

Retain a portion of the death benefit through our Premium Finance Rescue program, offering continued coverage despite discontinued premium payments

Eliminating Collateral Calls

Collateral fatigue is becoming a growing issue as outside collateral demands are increasing and impacting alternative investment choices.

Frequently Asked Questions

Are there any health requirements?

Our Premium Finance Rescue program is designed to be accessible to all clients, regardless of their current health condition. Whether you are in excellent health or have pre-existing medical conditions, this program offers a viable solution for you. No medical records or life expectancy estimates are required.

Is this available in every state?

Options are available in all states except California, Delaware, Hawaii, Kansas, Louisiana, Montana, Nebraska, New Hampshire, North Dakota, Oregon, Utah, Vermont, Washington, West Virginia, and Wisconsin.

Is there anything else to know?

While certain advantages may be associated with an ideal case design implemented between 2013 and 2020, we can still tailor the program to suit your needs, regardless of the timing of your policy design. Our priority is to help you achieve maximum benefits from your premium finance arrangement.

Case Studies

Scenario: We encountered an IUL (Indexed Universal Life) policy with an initial face value of $2.2 million. The policy face value had increased to $5.1 million, featuring an increasing design. The policyholder’s age at issuance was 59, and the current age was 72. The policy had an annual premium of $500,000 with a loan payoff of approximately $2 million.

Solution & Results: In this case, the specifically designed “Loan for Life™” program loan commitment amounted to $2.1 million, including loan arrangement and marketing fees totaling $174,000. $2 million of the Net Commitment was used to refinance the outstanding premium finance loan (a non-taxable event and the policyholder received the nominal remaining cash amount of $1,500. Additionally, the policy’s estimated death benefit schedule was defined contractually, providing a favorable outcome. Starting at $3.9 million at age 88, the death benefit was secured at $3 million by age 100. This case study exemplifies the strategic approach and financial advantages that Harbor Life’s Premium Finance Loan Rescue Program offers.

Harbor Life & Premium Finance Rescue

We are a pioneering leader in the life settlements industry, known for our innovative approach and transparent practices. We provide life settlement opportunities, unparalleled transparency and advanced technology to help clients achieve their financial objectives. As a select distributor of the “Loan for Life” Program, we have expanded our tool kit to include loans (with typical loan tax treatment) against policy cash values. Learn how it can add significant value to both your current and prospective clients. 

Leverage the Expertise of our In-House Premium Finance Specialist

Explore new horizons with Harbor Life by scheduling a session with our In-House Premium Finance Specialist, who will walk you through recent successful case summaries and address any questions you have about the program.

How To Submit

Option A: IUL Policy Requirement Checklist

Illustration 1

  • Max funded premiums without MEC status
  • Pay off any carrier loan with out-of-pocket funds.
  • Allocate 100% of future premiums to a high performing index account, no allocation to a fixed account.

Policy Values Statement to Include

  • All current account values
  • Cost Basis
  • Loan Interest Rate

Payoff Letter for Premium Financed Policies

As-Is Illustration (If there is a carrier loan)

Option A: IUL Policy Requirement Checklist

Illustration 1

  • Max funded premiums without MEC status, Option B Death Benefit (increasing) until maturity
  • Pay off any carrier loan with out-of-pocket funds.
  • Allocate 100% of future premiums to a high performing index account, no allocation to a fixed account.

Illustration 2

  • Max funded premiums without MEC status with Option B Death Benefit (increasing) until age 79, switch to Option A (level) at age 80.
  • Pay off any carrier loan with out-of-pocket funds.
  • Allocate 100% of future premiums to a high performing index account, no allocation to a fixed account.

Policy Values Statement to Include

  • All current account values
  • Cost Basis
  • Loan Interest Rate

Payoff Letter for Premium Financed Policies

As-Is Illustration (If there is a carrier loan)

Whole Life Policy Requirement Checklist

Full Pay Illustration

  • Dividends used to purchase paid off additions
  • Pay off any carrier loan with out-of-pocket funds.

RPU Illustration

  • Death benefits reduced to the point that no future premiums are needed.
  • Dividends used to purchase paid off additions
  • Pay off any carrier loan using out-of-pocket funds.

Policy Values Statement to Include

  • All current account values
  • Cost Basis
  • Loan Interest Rate

Payoff Letter for Premium Financed Policies

As-Is Illustration (If there is a carrier loan)

Take the first step towards unlocking financial opportunities with our Premium Finance Rescue program. Contact our team now to schedule a consultation with our Advanced Life Insurance Market Specialist and discover how this innovative solution can benefit you.