Estate Planning with Premium Finance

Leverage for the estate plan

Instead of writing eight-figure premium checks, a lender funds the policy while you pledge collateral. The trust owns the policy, the death benefit passes income-tax-free, and your liquid capital stays deployed in your own investments.

Strategy Two of six · Presented by Neal Brown

The Numbers at a Glance

From the example presentation below

Example policy face amount

$100M

Symetra Ascent IUL

Full annual premium

$7.16M

Funded by institutional lender

Client out-of-pocket

$1.4M/yr

Years 1–10 in the example

Loan rate

SOFR + 1.90%

5.68% year-one rate in the example

How the Strategy Works

How the structure works

Client pledges collateral; the lender funds the premiums
An ILIT owns the policy — proceeds stay outside the taxable estate
The loan is repaid from policy values, death benefit, or outside assets

Why families use it

Preserve liquid capital instead of deploying large lump sums
Heirs receive income-tax-free proceeds at institutional scale
Reduce the taxable estate while securing a substantial benefit

The example illustration

Projected gross death benefit of ~$987M at age 95
Projected gross cash value of ~$944M with the loan fully repaid
Indexed growth at a 7.03% assumed crediting rate with a 0% floor

The Example Presentation

Premium-financed example prepared through the LIBRA Insurance Partners network. Values are projections at an assumed crediting rate and are not guaranteed.

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Want this illustration with your numbers?

This example was prepared for a "Valued Client." A personalized presentation uses your age, your assets, and your goals. Reach out to schedule a conversation with Neal Brown.