Premium financing and cash value based lending are valuable tools for individuals who need life insurance but don’t want to tie up capital. Here’s a look at one of our most successful cases that may provide insight into the true benefits of life insurance premium financing.

The Problem

Recently, an individual purchased a sizable life insurance policy for her succession planning needs. Cash flow from her real estate investments provided the source of funds for the required premium stream. Soon thereafter, the client was approached with an enticing opportunity to invest in a senior living facility at a steep discount. However, the client’s relationship bank offered unpalatable financing terms.

The Solution

At the 25th hour, the client’s advisor was informed of this issue and reached out to Wintrust Life Finance to determine whether the cash values of the existing life insurance policy could be used to obtain a loan. Time was of the essence and the window of the client’s investment opportunity was quickly closing. Due to Wintrust Life’s expertise with cash surrender value based lending, a $12 million loan was arranged in short order which provided the liquidity needed without disrupting any other existing asset.