Premium finance

[Lloyds of Lubbock]

From the time you meet a client to the the tme you actually close the case, is around a year for us.
We are the leading office in more than one company so we may doing things right.
We only use whole life and our banks (that give us referrals) prefer whole life and provide a high lending value on the cash value.
We do 30 cases a year all in house, we do not partner with outside advisors.

 

[Jason T Brown]

Gotcha!! Yeah, that makes sense...based on what you said Lloyds. Totally respect that! All I can say is I've been in the business (and licensed) since 1997. My first experience with premium finance was in 2002. Fast forward to present day. The most attractive and proven program I've ever seen uses IUL and they currently have arrangements with 11 banks. Over $5 Billion in funded deals since early 2000's. To each their own, BUT a major key to these deals is being sure everything is done legitimately and properly!! Hopefully we can all agree on that!! This particular funding provider was vetted by attorneys and CPA's, which was important to me when I decided to start working with them. I'll end with this comment --- Unfortunately, I've seen several financing operations that I'd never work with! Agents and IMO's better know what they're doing if they want to play in this sandbox! Just my 2 cents.

 

[Lloyds of Lubbock]

The key to premium financing is the servicing.
We sell multiple policies across family generations.
I sell whole life you like IUL....you should sell what you have a conviction for.

 

[Lassion]

Does it really work? I don't even believe in it. At least, I couldn't get it out. It isn't easy to sell such a thing. I think you already know that. Many people have failed on this. Although my company does a few other things, we also failed. Moreover, it was a period of coronavirus, quarantine, and zoom meetings. Everything turned out not in our favor, and I had to liquidate the company.

 

[Lassion]

Does it really work? I don't even believe in it. At least, I couldn't get it out. It isn't easy to sell such a thing. I think you already know that. Many people have failed on this. Although my company does a few other things, we also failed. Moreover, it was a period of coronavirus, quarantine, and zoom meetings. Everything turned out not in our favor, and I had to liquidate the company. These services helped a lot We are experts in Pre Pack Administration | Antony Batty London. I think, without them, I wouldn't have known that there is a pre-pack. I'd probably sell the company at an unfavorable price, not to lose even more money in the future for paying senseless rent and other bills.

 

[MIGA1626]

We own a premium finance company but we only do P&C for E&S lines.

 

[PrivClientSG]

Premium financing is actually a very good product. Large cases are the norm, the service work is what you need to have in place to sell one though.

Respectfully, I disagree...premium financing is not a product. It is a method -- which is based upon a loan/borrowing -- to pay premium on acquiring life insurance. Thinking the entire situation, the policy, the loan/borrowing, the overall strategy, the administration, and so on, is a product is why many people -- life insurance professionals and clients -- can get into trouble. All the best!

 

[PrivClientSG]

Does it really work? I don't even believe in it. At least, I couldn't get it out. It isn't easy to sell such a thing. I think you already know that. Many people have failed on this...

Does split-dollar work? Depending on the overall situation, yes, absolutely, it can work. It is a method to fund premium and acquire life insurance. It is not a reason to buy life insurance. If there is no real need, the fact that you "can borrow the premium" is not a reason to buy it. Most people don't understand, fall into, force, get lucky, whatever, make a sale -- and then it implodes -- because people didn't understand it. Or, the sale doesn't happen, because people didn't understand it, and the conclusion is "it doesn't work" so to speak. Many people failed for many reasons, a lot of which can be categorized under "people didn't understand it."

Even with a rise in interest rates, it "can still work" -- and the entire strategy is not only feasible, but can make sense and be successful. Yes, it can be a long sales process/cycle. However, while I've seen it take a year, I've also seen it take three months as well. If everything is done correctly...and I mean everything...and it's implemented and works...Then...The real secret to premium finance is...the exit strategy. Thanks.