Premium Financing

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2021 Premium Financing Vendor Survey

Despite the fact that this publication is called The Life Product Review, I occasionally take a detour into sales strategies focused on product, particularly premium financing. I’ve found that there’s a huge appetite for content on premium financing. Everyone has…

#287 | Peak Premium Financing?

Last weekend, I was up in the mountains of North Carolina and happened to run into a guy from Tampa who I knew from overnight camp when I was a kid. I hadn’t seen him since we were both counselors…

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#269 | Tackling an Aggressive Premium Financing Proposal

Over the past year, I’ve seen somewhere around 50 proposals for new life insurance transactions from all corners of our business and sent to me by brokerages, agents and even consumers who find me on the internet or are referred…

#241 | The Premium Financing Exit Mirage

Indexed UL has undoubtedly ushered in a new era of hyper-aggressive premium financing deals and the reasons why aren’t hard to figure out. Indexed UL allows for illustrated rates based on hypothetical historical lookbacks and the maximum rate is the…

#167 | Don’t Be Fooled by VRDO

I’ve seen more than a few proposals and pitches recently from companies with ambiguous, financial-sounding names promoting strategies with life insurance that sound like premium financing, but the promoters are insistent that they have something different and better (and usually…

#145 | Financed IUL Update

In Quick Take #2, I surmised that higher interest rates would put a clamp on new financed IUL proposals and the squeeze on in-force designs, particularly the ones where the client planned on accruing interest forever. But just as cockroaches…

#124 | The Unraveling of Financed IUL

There are a lot of good reasons to do premium financing that relate entirely to the specifics of the (very wealthy) client’s asset mix and estate planning liabilities, and then there’s one really bad reason – financial arbitrage. The crux…

#61 | Product Design and Premium Financing

Premium financing is a very simple idea – borrow money to buy life insurance. Doing so essentially allows the policyholder to trade premium payments for loan interest payments. The problem is that this simple story always comes along with baggage.…

#49 | Free Insurance Fiction

[et_pb_section fb_built="1" _builder_version="3.0.90" custom_padding="0px|20px|15px|20px"][et_pb_row custom_padding="15px|0px|27px|0px" _builder_version="3.0.47" background_size="initial" background_position="top_left" background_repeat="repeat"][et_pb_column type="4_4" _builder_version="3.0.47" parallax="off" parallax_method="on"][et_pb_text _builder_version="3.0.91" header_font="||||||||" header_2_font="||||||||" background_size="initial" background_position="top_left" background_repeat="repeat"]Richard Poundstone’s book “Priceless” recounts a study where Hershey’s Kisses were offered to students on one day for the price of 1…