Premium Finance – 5 Benefits for Business Owners
Today’s life insurance is more than just paying for death benefits. This insurance policy offers a large number of living benefits while policyholders are still alive than before in history. For high-value high-value business owners and individuals, the benefits of premium life insurance financing can be extraordinary.
Benefits # 1 tax free loan:
Premium Life Insurance Finance is a loan made for individuals and companies that want to buy and fund a large amount of tax-free cash value in the life insurance policy. Because businesses do not pay income tax on loans, the money received by individuals or companies can directly lead to the life insurance policy and are taken as cash in the future, tax free. In addition to tax-free loans and tax-free tax withdrawals, business owners can remove their taxes with loan interest.
Benefits # 2 Tax free income stream:
After the policy loan is returned, business owners can take money from their life insurance policies as a tax-free tax withdrawal. The money taken from the insurance policy is considered a policy loan and therefore is not subject to taxation by the IRS. Usually, most individuals can begin to spend money from their insurance policy for only 5 years.
Benefits # 3 Asset Protection:
In most states, cash values build in annuities and life insurance protected from creditors. If you have ever been sued, this asset will not appear on any database that is connected to you personally. Also, most states have a guarantee association that includes a cash value of up to $ 250,000. This protection will ensure that a large amount of money you have in your life insurance policy is protected by risk and law.
Benefits # 4 Don’t ever lose the value:
Benefits as stated above have no meaning unless the underlying life insurance vehicle has several types of guarantees to protect policy owners from stock market losses. This is achieved by using a lifetime policy or universal insurance (IUL). We suggest using a universal life insurance policy that is indexed because of the reverse potential of 12-15% annual lid and a 1% minimum guarantee is very interesting.
Some indexed universal insurance policies offer critical and chronic disease rights. These drivers are usually offered at no extra cost and they can provide additional income if a medical situation occurs. If you have been seriously ill, you can access up to 90% of the benefits of death to use when you are still alive.
Benefits # 5 Creative Life Purchases
When business owners decide now it’s time to sell their business, they are faced with the fact that their buyers may not be able to find financing. Most business owners must use several types of self financing where they will help new owners finance business purchases.