As a result, private businesses can put more of their revenue or budget allocations towards improving the business, while still taking care of their benefit concerns.
With the lowest interest rates in history, utilizing bank money to fund these needs makes perfect sense! By using the cash value of the policies combined with other assets (if necessary), businesses can collateralize a loan in order to fund the premiums instead of paying out-of-pocket. Interest is rolled up into the loan and an insurance product is used that has the opportunity to grow cash values that outperform the loan. When the cash value is sufficient, the loan is paid off and the companies life insurance policies are fully funded, but the excess cash values can be used for additional benefit offerings such as buyouts or port-retirement benefits.
Contact us to schedule a brief meeting to discuss whether this option works for your business.