If you’re one of the many advisors that finds traditional premium financing either too risky or too inflexible, you need to know about non-qualified split-funded insurance planning.
Benefits of Considering Non-Qualified Split-Funded Insurance
Split-funded insurance planning involves two parties, often an employer and employee(s), working together to fund an insurance policy. In the end, both parties end up receiving significant benefits, while being exposed to far less risk than traditional premium financing. Through split-funding, your clients can enjoy the significant cash flow and a large death benefit associated with premium financing – but without needing a third-party lender or any collateral. Even better, there is a much greater flexibility in product selection.
Client Profile
What makes an ideal client for split-funded insurance planning? Here are a few qualities to look out for:
High-income business owners seeking to recruit, retain, or reward employees
Clients looking for an alternative asset class
Risk-averse clients interested in the benefits of premium financing
Conversation Starters
Are you interested in the benefits of premium financing, but are concerned by the risks?
Did you know there's a way you can enjoy premium financing, but without requiring a third-party lender or any collateral?
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