There are potential advantages of financing life insurance premiums. This allows the policy owner to lower their cost. As an alternative approach to funding a policy, the client may want to consider the potential advantages of financing life insurance premiums, which may provide a policy owner more financial flexibility.
This approach involves leveraging the existing assets rather than liquidating them. Premium financing may make the purchase of life insurance more convenient if the assets are not readily liquid or if the client prefer to retain those assets and avoid having to alter their cash flow.
Liquidating assets may be neither efficient nor desirable depending on market conditions, tax implications or potential for future capital appreciation.