What about internal premium finance? Borrow from the policy to then max fund the policy? What's your opinion on that? Wouldn't it be more secure since the insurance company keeps all the money in house.
It can certainly work. Like most situations in this space, situations are unique and should be discussed with a professional. We believe its our job to education on the risks, mechanics, and what ifs - and if we do that - people are smart enough to make decisions they are happy with.
Not sure why this is better than just funding the cash value yourself. In my case, the reason I have a Universal Life policy is that my wife and I already max out our 401k’s and HSA’s and we were looking for other ways to defer income. We didn’t want any more stock market exposure. My policy was a fixed rate of 5% for many years when rates on other risk free investments were paying less than 1%. The money I used to fund it I didn’t need and I saved taxes I would have otherwise paid.
Check out the full playlist - we highlight different places where Premium Finance could make sense. Products & Strategies aren't universally good or bad. Strategy must met the goal/outcome.
What a great and thorough review of the strategy. Thank you!
What about internal premium finance? Borrow from the policy to then max fund the policy? What's your opinion on that? Wouldn't it be more secure since the insurance company keeps all the money in house.
It can certainly work. Like most situations in this space, situations are unique and should be discussed with a professional. We believe its our job to education on the risks, mechanics, and what ifs - and if we do that - people are smart enough to make decisions they are happy with.
What's your view on KaiZen premium financing?
It can be a great strategy. Everyone's situation is unique. With KaiZen its important to understand the liquidity restrictions in the early years.
Not sure why this is better than just funding the cash value yourself. In my case, the reason I have a Universal Life policy is that my wife and I already max out our 401k’s and HSA’s and we were looking for other ways to defer income. We didn’t want any more stock market exposure. My policy was a fixed rate of 5% for many years when rates on other risk free investments were paying less than 1%. The money I used to fund it I didn’t need and I saved taxes I would have otherwise paid.
Check out the full playlist - we highlight different places where Premium Finance could make sense. Products & Strategies aren't universally good or bad. Strategy must met the goal/outcome.