If life insurance had no out-of-pocket cost, how much would you want?
Here’s how high net worth individuals own large life insurance policies without having to liquidate assets to pay the premiums.

Premium financing is a strategy used by high net worth individuals in need of a large life insurance policy ($10 million or more) to cover estate taxes, leave a legacy, bequeath a charitable gift, etc. By financing the policy instead of liquidating assets to pay the premiums, owners obtain the desired protection without high out-of-pocket costs. Indeed, it may be possible to fund an entire policy without having to write a single check for premiums. Here’s how it works.


Let’s say John, age 60, wants to protect his estate from taxes with a $20 million life insurance policy. Premiums on a $20 million policy can run into hundreds of thousands of dollars a year. Rather than pay the hefty premiums in a lump sum, a bank pays the premiums for John. John in turn uses part of his art collection as collateral against the loan. If engineered correctly, the growth of the cash value inside the policy will pay off the bank loan, and fund the policy for the rest of John’s life. John will never have to write a premium check. Once the bank loan is covered, his collateral is released.


Premium financing requires a team of experts to execute correctly. Designing the plan using too-aggressive projections may expose the policyholder to additional and unexpected payments down the road. Sage partners with the top banking, insurance and financial institutions in the world to design a strategy that fits your unique needs and circumstances.


Our conservative approach combines high cash value life insurance with low-cost loans not available to the general public. We work with some of the largest and most highly-rated life insurance companies in the U.S., offering products that can provide substantial cash value accumulation. These products have historically exceeded the projected borrowing costs for this policy.


The minimum policy face amount required for premium financing is $10 million.


Click here to start a conversation about Premium Financing.