Premium Financing: Hedging against Uncertainty

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Affluent insureds can use leverage to buy life insurance using recourse and non-recourse premium financing. After two years, the coverage may be sold as a Senior Life Settlement, or retained.

“America’s Insureds 65 and older own less than $1 trillion of $16 trillion in-force life insurance,” said American Viatical’s President Morris Heins, whose financial career began in 1965. Many affluent individuals need far more coverage, yet balk at the expense, because they are uncertain about the future of estate taxation and concerned about tying up too much money. Premium Financing allows qualified individuals to obtain $5 million or more of coverage, with loans structured to suit the situation.

Trusts are used to eliminate the issues of gift taxation and incidents of ownership. At the end of the loan, the Trustee may pay off the loan and retain the policy. Then or at a future time, the policy may be sold for a Senior Life Settlement. Or, the Trustee may walk away from the loan and the policy, depending on circumstances.

A large number of carriers may be used, greatly expanding the opportunities for insurance agents and other licensed financial advisors to select the best for each client. To allow maximum flexibility, it is well to consider using $5 million as the ideal size for each policy. The minimum age is usually 74.

American Viatical’s national resources can provide just the loan guidance, assist the writing agent in impaired risk situations, or provide case development from front to back.

American Viatical does not offer investment products, “Viaticals,” or advice about legal or accounting matters. Attorneys, CPAs, insurance agents, financial planners, Registered Investment Advisors, and stockbrokers are welcome to inquire about Premium Financing and Senior Life Settlements.

About American Viatical

American Viatical is among the largest Internet-based Brokerages for Senior Life Settlements and Viatical Settlements. Privately held and independent, American Viatical represents the policy owner. Each case is submitted to all appropriate Funders, in order to obtain the highest possible bids. Premium Financing is available through its advisory network.

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Morris Heins
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