Premium financed life insurance that keeps your capital working
Paying millions in premiums out of pocket ties up capital that could be working elsewhere. With premium financing, a specialized lender funds the premiums, so you secure a large policy while your assets stay invested.
Preserve capital · Access larger coverage · Confidential review
How financing compares with paying premiums yourself
The basic comparison is simple: the growth on the capital you keep invested, measured at your expected return, against the loan balance that accrues at the lender's rate. When your capital out-earns the loan, the spread works in your favor while the policy stays in force. When the loan rate exceeds your return, the strategy produces a net cost.
Real designs also account for collateral, policy crediting rates and fees. We build a stress-tested illustration around your actual premium, timeline, expected return and loan rate before recommending anything.
Three parties, one strategy
The lender funds your premiums, your capital stays invested as collateral and the carrier issues the policy.
You (or your trust)
- Pledge collateral (assets or securities)
- Cover loan interest, if required
- Keep your capital invested
Premium finance lender
- Lends the premium dollars
- Pays the carrier directly
- Sets rate and repayment terms
Insurance carrier
- Issues the life insurance policy
- Builds cash value (collateral)
- Pays the death benefit
From policy design to loan repayment
Apply for coverage
We start with the goal, not the loan: the right policy type and death benefit for your estate-planning or business needs, confirmed insurability and pricing, and a model of the strategy before any commitment. The insurance has to make sense on its own merits; financing is the funding method.
Secure financing
We match you with a specialized premium-finance lender and negotiate rates, terms, collateral requirements and repayment around your timeline. Loan rates are typically variable, and a rate increase raises your cost, which is why we stress-test the design.
Lender pays premiums
The lender pays premiums directly to the carrier each year. You provide collateral, usually the policy's cash value plus pledged assets or securities, and cover loan interest if the design calls for it. If cash value grows more slowly than projected, the lender may call for additional collateral.
Cash value grows
Cash value accumulates tax-deferred and serves as collateral, and a well-designed policy narrows the collateral gap over time, which can free up pledged assets. Growth depends on the carrier's crediting rates and isn't guaranteed, so conservative assumptions matter.
Exit strategy
Every design includes a repayment plan from day one: repay from policy cash value, the death benefit, refinancing or out of pocket. A strategy without a well-defined exit is a red flag; the exit is planned before you sign.
Why qualified clients use it
Preserve capital
Keep liquid assets working in your business or portfolio instead of tying them up in premiums.
Leverage arbitrage
When your investments out-earn the loan interest rate, the positive spread works in your favor.
Larger coverage
Access substantially larger death benefits than you might otherwise fund out of pocket.
Estate planning
Fund estate-tax liquidity, equalize inheritances or back a buy-sell agreement without draining other assets.
Tax efficiency
Death benefits are generally income-tax-free to beneficiaries, and properly structured policies grow tax-deferred.
Flexible exit options
Repay via policy cash value, death benefit, refinancing or out of pocket, designed around your plan.
The profile premium financing suits
Most clients who benefit meet several of these markers. Meeting one or two is worth a conversation about whether financing or a simpler approach fits best; meeting most suggests a stress-tested illustration is the next step.
Net worth of $5M+
Assets to support collateral and qualify.
Insurance need of $3M+
Substantial coverage for estate or business planning.
Annual income of $500K+
Cash flow to service the strategy.
$1M+ in liquid assets
Securities or cash to pledge as collateral.
Insurable health and a long horizon
Comfortable holding the strategy 10–20+ years.
Powerful, and complex
Interest-rate risk
Loan rates can rise over time, increasing the overall cost of the strategy.
Collateral calls
Additional collateral may be required if the policy underperforms projections.
Policy performance
Cash-value growth depends on crediting rates and may fall short of the illustration.
Long-term commitment
This is a multi-year strategy; an early exit can produce losses or unfavorable outcomes.
Work with a premium financing specialist
Michael Oskouian, MBA, ARM, CRM, CIC, LUTCF, co-founder of First Underwriters, has more than three decades in financial services. He helps high-net-worth individuals and business owners use premium financing to meet estate-planning and legacy goals, with every design stress-tested before it's recommended.
"Premium financing isn't just about acquiring life insurance — it's strategic wealth optimization. I work closely with each client to make sure this strategy fits their overall financial picture and legacy goals, and we stress-test it before moving forward."
— Michael Oskouian
Explore premium financing
Tell us a little about your situation and Michael will personally assess whether this strategy fits. Confidential, no obligation.
- A-rated carriers and established lenders
- Every design stress-tested for rate and performance risk
- Coordinated with your attorney and tax advisor
Prefer to talk it through?
Call our Kirkland office to schedule a confidential conversation about your goals and whether financing fits.
Content on this page is general education. It is not tax, legal or investment advice, an offer of credit, a statement of coverage or a projection of policy or investment performance. Premium financing involves leverage and material risks, including interest-rate increases, collateral calls and policy underperformance; if the loan rate exceeds your return, the strategy can produce a net cost. Coverage and eligibility are subject to underwriting, and guarantees are subject to the claims-paying ability of the issuing insurer. Consult your tax and legal advisors before proceeding.