Successful individuals, entities and business owners often need to purchase more life insurance than other Americans.
A premium financing strategy may be useful when you want to leverage life insurance for legacy and business planning, but don't want to liquidate the assets you have tied up in a business or in other profitable investments.
How commercial premium financing works
You borrow money from a third-party lender to fund your life insurance premiums.
The lender makes premium payments to Lincoln.
You make payments to the lender for interest and/or a portion of the principal.
The addition of a rider may provide high early cash value from the policy that can be used as collateral to secure a portion of the loan.
The lender is repaid with a policy distribution, other assets or both.*
Upon the insured’s death, the death benefit is paid to the beneficiary or to the lender if the loan has not been repaid.
Ask your advisor about these potential benefits
- You can have more life insurance benefits at a lower out-of-pocket cost.
- With commercial premium financing, your other investments can grow while the lender funds the premium.
- You could have income tax-free access to policy cash value for retirement or to meet other needs throughout your life.*
- For estate planning, you can leverage your annual gift tax exclusions or lifetime exemption to protect and potentially increase the amount of wealth you pass on to your loved ones or favorite charity.