For individuals, business owners and their staff members with a demonstrated life insurance need, life insurance premium financing can make a lot of sense.
The costs of living or running a company add up, and there’s only so much available capital that can go toward addressing these expenses. Life insurance premium financing helps in this regard by paying for the premiums with the lending assistance of a third party.
Individual life insurance has been – and still is – the main thoroughfare by which Americans obtain coverage, but it’s increasingly through their workplace. And of those who don’t have life insurance benefits from their employer, 24 percent of men and 15 percent of women wish they would, according to recent survey research by Randstad.
Leveraged Planning® Solutions from Global Financial Distributors is a life insurance premium financing program that can pay substantial dividends both for individuals as well as businesses. While people and entrepreneurs from a variety of professional backgrounds use Leveraged Planning® to their advantage, this strategy is particularly well-suited for those from certain industries.
Here are three of them:
Medical
Health care accounts for approximately 18 percent of the U.S. economy, according to the Center for Medicare & Medicaid Services. This spending goes toward the tests, procedures, examinations and the salary of the medical community.
“15 of the 20 highest earning occupations are in the health care field.”
Doctors and health care practitioners are consistently the highest-paid professionals in America. According to the most recent data from the Bureau of Labor Statistics, 15 of the 20 highest paying occupations in the country are in some aspect of medicine. Specialists earn an average annual salary of $329,000, while primary care physicians average $223,000, based on the latest Physician Compensation Report from Medscape.
But hospitals and medical offices also have high operational costs from the tests and pharmaceuticals their patients need, to paying for the electric services that power the lights and automated equipment.
Writing for HealthcareNews, Samuel Catanese estimates that between 60 and 70 percent of what they charge goes toward paying down the costs of overhead. For primary care practices, the overhead median is 59.5 percent, according to the nonprofit Medical Group Management Association.
In short, the revenue hospitals and medical offices generate is already tied up in other capacities, making it difficult to pay for premiums. Life insurance premium financing can resolve this dilemma.
Legal
With more than 170,000 in California to in excess of 177,000 in New York, lawyers represent a broad swath of the working public. The latest numbers from the American Bar Association put the total of practicing attorneys in the U.S. at 1.3 million, up 0.2 percent from 2017. Judges and magistrates also make a regular appearance in the BLS’ annual highest paying jobs list, averaging $133,840 per year.
But the cost of legal services can be considerable, preventing professionals from being able to charge too much of a premium without compromising the loyalty of their clientele. Based on a survey from Robert Half Legal, approximately 66 percent of lawyers indicate they call on some of their associates to juggle multiple tasks, particularly paralegals and legal secretaries.
Jamy Sullivan, Robert Half Legal executive director, noted law firms are creating these hybrid positions to save on costs and improve operational efficiencies.
Among employers in general, 40 percent of managers in a separate Robert Half poll said it’s fairly routine for them to extend promotions to their associates without an accompanying pay increase, up from 23 percent who indicated as much in a 2011 survey.
In other words, law firms are looking to get leaner. They can continue with their cost-cutting and still take care of their associates’ coverage needs through life insurance premium financing.
Finance
The finance sector is a broad field, including a variety of different occupations. What just about all of them have in common is their income. For instance, strategy managers earn a median base salary of $130,000, according to Glassdoor, financial managers make about $115,000 per year and data scientists’ median pay is also in the low six figures.
“Close to two-thirds of financial firms are understaffed.”
Despite their handsome compensation packages, though, finance and accounting executives are short-handed, forcing them to devote much of their attention on recruitment.
A recent joint survey by Robert Half and the Financial Executives Research Foundation found nearly 65 percent of polled respondents acknowledged being understaffed, at least to a slight degree. Additionally, 61 percent of financial executives say they expect to devote more of their financial resources to compliance protocols over the next three years due to the stricter regulatory environment.
Whether it’s used to pay for benefits that job seekers desire or as an alternative funding source so cash flow can remain fluid, life insurance premium financing can double as working capital to fill in the gaps that firms may need to operate at their peak.
For more information on Leveraged Planning® Solutions and why it sets the standard for life insurance premium financing, talk to a GFD Services manager.
