Leveraged Life Insurance

Benefits:

1. 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.
2. 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.
3. Allows for even larger endowment opportunities.