Funding Jumbo Life Insurance Policies with Fewer Dollars

To all Top of the Table Life Insurance Agents: We all know that regardless of the wealth and liquidity of your clients, it’s rare that they love to pay premiums, even though you’ve clearly established the need and the ability to pay.

The purpose of this article is to assist in making the premium paying process easier for your clients.

This article is based on my own experience, and I am happy to put your clients in direct contact with the solution(s).  I am not a broker or agent, yet do provide this door opening service for wealthy individuals and entities. Any specific questions regarding jurisdiction, structure, taxation, etc., are to be addressed directly to the solution providing entities whom are qualified and properly licensed.

First, let’s assume a $15 million per year premium. This can work with as little as a $5 million premium, to a limit without a ceiling.  Using the $15M premium, the following is an outline of how to get the premium paid in a very efficient manner:

1.    client establishes a separate corporation, jurisdiction to be determined, and places $5 million on deposit

2.    an administrative hold is placed on that deposit for one year

3.    an investment firm makes use of that administrative hold to add lines of credit at a multiple, and invests those funds on your behalf.

4.    current returns are in the 25% per month range on your $5 million, or 3x the original capital, due to leveraging.

5.    at the end of the year, your client may simply renew this process for another year

6.    at the end of any given year, the client may stop this transaction and the administrative hold on their $5M will be released for their own use, without restrictions.

Bottom line, in this example, for 1/3 of the first year’s annual premium, investment income funds ongoing life insurance premiums.

For more modest yet still jumbo life insurance policies, say, $5M of premium, this 25% per month return can generate surplus cash to pre-pay the policy, to fund other policies of the client, family, etc. The possibilities are endless.

For those active in the life settlement arena, this is a way to dramatically reduce the carrying costs of a portfolio of policies under management. Returns increase significantly at $100M on deposit and above.

In closing, I am happy to speak with you directly, and ultimately introduce your client directly to the investment firm. Please contact me at for our Pre-Qualification Package.

Wes Robinson
Family Office
Phone: +1 (902) 488-9734