Clear Answers to Common Questions

We believe informed decisions lead to better outcomes.

Below are answers to the most common questions we receive from individuals exploring advanced liquidity and premium financing strategies.

If you don’t see your question here, we’re happy to discuss it during your Fit Check.

General Questions

Is this a sales call?

No.

The initial 15 minute Fit Check is a screening conversation not a product presentation.

Its purpose is to determine whether advanced planning may be appropriate for your situation.

No.

The initial 15 minute Fit Check is a screening conversation not a product presentation.

Its purpose is to determine whether advanced planning may be appropriate for your situation.

No.

There is no obligation to move forward after any call.

Our process is built around clarity first, decisions second.

We are a specialized firm focused on premium financing strategy, design, and coordination.

We work alongside your CPA, attorney, and other advisors, not in place of them.

About Premium Financing

What exactly is premium financing?

Premium financing is a strategy where a lending institution provides financing to pay life insurance premiums rather than using personal cash.

It is typically used by high income individuals who prefer to preserve liquidity and structure wealth strategically.

Because ability and efficiency are not the same.

Many families choose financing to:

  • preserve capital
  • avoid liquidating assets
  • maintain flexibility
  • plan estate liquidity

The decision is based on structure, not affordability.

Like any leveraged strategy, it carries risk.

That’s why proper design, conservative assumptions, and ongoing monitoring are essential.

If the risk profile does not make sense, the strategy should not be implemented.

No.

There are no guarantees.

Any advisor promising guaranteed outcomes is not being transparent.

Qualification & Suitability

Who typically qualifies for premium financing?

Most clients who explore this strategy have:

  • $300,000+ annual income
  • $2 million+ net worth
  • sufficient liquidity or collateral
  • long term planning horizon

Each case is evaluated individually.

Not exclusively.

While often used by UHNW families, many successful business owners and investors also qualify.

If premium financing is not appropriate, we will say so and help point you toward more suitable alternatives.

Structure & Planning

Do I need a trust?

In many estate planning scenarios, yes.

Trust structures are often used to ensure proper ownership, control, and tax treatment.

Your estate planning attorney typically handles trust design.

No.

We coordinate with your existing professionals.

Advanced planning works best when advisors collaborate.

Premium financing is often used to create liquidity for estate planning purposes.

It does not eliminate estate taxes, but it can help ensure assets are not forced to be sold.

In some cases, yes, depending on structure and objectives.

This is evaluated during the Strategy Call.

Banking & Loans

Who provides the financing?

Financing is provided by third party lending institutions that specialize in premium finance lending.

We help coordinate the process.

Collateral varies by lender and structure and may include:

  • cash
  • marketable securities
  • letters of credit
  • other acceptable assets

Collateral planning is reviewed carefully before implementation.

Yes.

Most structures include flexibility for early repayment or refinancing.

Exit planning is always discussed upfront.

Ongoing Monitoring

Is this a “set it and forget it” strategy?

No.

Premium financing requires monitoring.

This includes reviewing loan balances, collateral, and policy performance over time.

Interest rate sensitivity is evaluated before implementation.

Strategies are designed to remain viable under conservative assumptions.

Typically on an annual basis or more frequently if circumstances change.

Costs & Transparency

How are fees handled?

Costs vary depending on structure, carrier, and lender.

All costs and compensation are disclosed clearly before any implementation.

No.

Transparency is a core principle of our process.

Getting Started

What’s the first step?

The first step is a 15 minute Wealth Liquidity Fit Check.

This helps determine whether advanced planning is appropriate for your situation.

Nothing formal.

A general understanding of your income, net worth, and goals is sufficient.

Timelines vary based on underwriting, banking review, and legal coordination.

This is discussed during the Strategy Call.

Final Thought

Premium financing is not for everyone and it shouldn’t be.

When used appropriately, it can be a powerful planning tool.

When used incorrectly, it can create unnecessary risk.

Our role is to help ensure decisions are made thoughtfully, transparently, and strategically.

Ready to Start With Clarity?

If you believe advanced planning may be appropriate for your situation, the next step is simple.

Ready to Start With Clarity?

If you believe advanced planning may be appropriate for your situation, the next step is simple.