Life Insurance Premium Financing Loan Highlights
- 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
- Up to 10 year loan terms
- Minimum initial premium: $100,000 (minimum loan sizes may vary based on carrier requirements)
- 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
- Borrower is an entity such as a corporation, or trust
- Trustee is a U.S. national bank
Interest Rate Options
Libor or Prime + Spread Adjustment options are customizable.**
Adjustment options are customizable.**
Custom Rate Options
Rate structures are customizable based on loan size (caps, buy downs and structure switches available).**
Interest (only) is paid on a current basis.
Interest payments are rolled into the loan. (carrier 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.