Premium Financing: How It Works
Simplicity is key when it comes to finances.
Whether you love getting into the nitty-gritty of the financial sector or you’d rather let someone else handle it for you, the RSB Life team is poised to take your finances to the next level. We have dedicated ourselves to providing world-class life insurance premium financing solutions and are able to provide elite results to candidates who fit our criteria.
We use every resource available to make sure you get the best results possible. We also generously share our knowledge with you so you can feel confident that you’ve made a good decision.
The Basics of Premium Financing
When you work with RSB Life, you’ll be funding a life insurance policy. We create financing plans for specific types of insurance policies. Otherwise, the financing strategies don’t work. Here are the two basic requirements for life insurance policies we can accept:
- The policy must accumulate cash value over time.
- The policy must be permanent, meaning it won’t expire after a certain number of years.
This type of policy can be underwritten as a Whole Life Policy (WLP) or Index Universal Life Policy (IULP), opening the gates for our elite strategies. Both of these policies work because they are permanent and they accumulate cash but they tend to be very polarizing. Some people are certain that a WLP fairs far better than an IULP and vice versa. At RSB Life, we believe that both product designs can work effectively in the correct climate; it just depends on your personal preferences, the policy and loan design and your particular goals.
Here are the differences between these types of policies which may explain in more detail why people tend to favor one over the other.
Whole Life Policy 101
- Known as the “conservative” product, a WLP comes with inherent and accumulated cash value, a minimum death benefit, and guarantees on premiums. It’s a straightforward policy where you know what you’re going to get no matter what happens.
Index Universal Life Policy 101
- This policy is riskier than a WLP because its returns are tied to an index, generally the S&P 500. Depending on how things go it can give you far higher returns than a WLP could. However, you aren’t guaranteed that the higher reward potential will translate into success. Over time, IULP’s usually perform better than WLP.
Reducing Risk and Giving You the Results You Need
Your financial situation is unique. At RSB Life, we take the time to assess your needs, goals, and risk tolerance so that we can create a plan that will give you the specialized results you need. We will stick with you every step of the way, making sure you know what is going on, how we’re pursuing your goals, and securing your financial planning future. Contact us today to learn more about what we can do to help you forward!