Life Insurance Premium Financing Loan Highlights

Client Profile

  • Insurance for estate planning, retirement income, wealth transfer, or business needs (e.g. key-man, Buy/Sell, etc.)
  • Consideration begins with unencumbered assets equal to or greater than $1,000,000
  • Good cash flows and debt/income ratios, liquidity, etc.
  • Acceptable Credit History

Loan Details

Term/Loan Size

  • Up to 10 year loan terms
  • Minimum initial premium: $50,000 (minimum loan sizes may vary based on carrier requirements)

Collateral

  • Generally no personal guaranty required*
  • Cash, letter of credit, CSV from approved carriers/products, t-bills, t-notes (≥ 5-year maturity)
  • 100% of policy CSV is applied

Ownership Structure

  • Borrower is an entity such as a corporation, or trust
  • Collateral Agent is a U.S. national bank

Interest Rate Options

Variable

Libor or Prime + Spread Adjustment options are customizable.**

Fixed

Adjustment options are customizable.**

Custom Rate Options

Rate structures are customizable based on loan size (caps, buy downs and structure switches available).**

Payment Options

Current Pay

Interest (only) is paid on a current basis.

Rollup

Interest payments are rolled into the loan.  (prior approval required)

Custom Payment Options

Payment options are customizable based on loan size.**

 

*  Trust based loans may require personal guaranty
** Call for details 
» Loans to ILITs generally require a signed personal guaranty document.
» For ILIT based loans, carrier-specific lending requirements may vary from those published above. Please consult carrier for their specific requirements.
» For refinance or in-force funding cases, loan requirements may vary from those outlined above.
» All rates and terms are subject to change without notice. Please contact your GFD Financial Services Manager for current information.