- Borrow the premium amounts from a commercial lender as opposed to paying them out of pocket.
- Loan is collateralized primarily by the policy’s cash value.
- Shortfall covered by pledging personal assets.
- Helps reduce the cost of the gifting strategy.
- Pay only a small portion of the overall premium. (Interest cost)
- Leverages the gifting strategy for more efficient results.
- Increased rate of return on death benefits.
- Reduces or eliminates the need to liquidate or redirect cash flow from lucrative investments.
- Allows for even larger endowment opportunities.