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Insurance Policy Loan Refinance

JUST IN $149.00

Upload your client’s insurance policy and rate information, and we will provide quick feedback on your client’s loan status. In addition to presentation material and handling all aspects of initial refinance, CCFG’s group of lenders will provide a competitive rate and terms.

Commercial financing can be a useful strategy for both new policy purchases and in-force portfolio management. Maximizing the productivity of existing life insurance assets is a key fiduciary deliverable every advisor is able to utilize.
In today’s advanced planning environment, there is an increased emphasis on maximizing the many “living benefits” available in a life insurance product.

One living benefit that policy holders have tapped into for years is the ability to obtain policy loans from their insurance carrier against existing cash values and future dividends for general purposes or to fund ongoing insurance premiums. These two constructs are known as policy loans or premium loans.
Just like any traditional loan, policy loans accrue interest and eventually need to be repaid. The interest rates charged on these types of loans aren’t subject to competition and can diverge drastically from comparable offerings in the marketplace.

CCFG personally structures each deal and assists advisors in providing their clients the information needed to make an informed decision. As a Third Party Administrator and CE educator for Life Insurance Premium Finance, CCFG is well positioned to support advisors in offering this deliverable to their clients. CCFG provides a tiered structuring fee that can be rolled into the loan.

CCFG charges $149 for an initial review and memo. If the client wants to move forward, CCFG will structure a fee based on the loan size to be refinanced, and CCFG’s ongoing involvement, if any.

Several years ago, an individual purchased sizeable life insurance policies from two insurance carriers for her estate planning needs. Over the years, more than $2M was borrowed against the policies with current interest rates of 6.5% and 7.4%, respectively. Unaware of such a thing as refinancing insurance policy loans, incurred interest has been taken against the policies or paid out of pocket each year.

The individual’s advisor enlisted CCFG to assist with lowering her rates and increasing the life insurance benefits. Time was of the essence as new premiums were due and securing financing was paramount to avoid another round of high interest expenses. Using CCFG’s streamline process, the advisor was able to finalize the transaction for the client in time. Ultimately, both loans were refinanced to 4%, and the client’s immediate interest expense was reduced by nearly $70k.

  • Credit Application
  • Personal Financial Statement (6mo or more recent)
  • 2 years tax returns
  • Bank and Brokerage Statements
  • Copy of party driver licenses
  • Copy of Trust (if trust owned)
  • Copy of formation documents (if borrowing entity is business)
  • Copy of insurance policy
  • Copy of insurance illustration run at guaranteed values, less current charges, showing loan paid off
  • Borrower’s verification call (confirming arrangement)