Wondering if you’d make a good candidate for Premium Financing?

Just like any other financial strategy, premium financing isn’t for everyone, and it’s important to understand whether or not it’s a viable solution for you. The RSB Life team works very hard in the screening process to make sure that we understand what you need and that you understand the strategy thoroughly. There are several strategies we use to help us identify whether this is the right solution for you. Here is a basic outline about how that works.

Who Is This Strategy For?

When we approach a prospective client, there are a few qualifiers we need to identify. Why? Because we want premium financing to be a painless, seamless and confident experience for everyone involved. Here are the main criteria we take into consideration:

The Client’s Net Worth

  • Premium financing is a financial strategy so it follows that we need clients that meet certain financial criteria. We are selective in order to protect our clients and mitigate risk.  What this means, in simple terms, that should the client at any point need to exit the strategy and pay the premiums out of pocket, they could.  As such, our clients must have at least a 5 million dollar net worth. This value can be in real estate or other investments, but clients must have liquidity and be able to demonstrate such to the lender.

The Client’s Risk Tolerance

  • After determining a client’s net worth, we dive into their risk appetite or tolerance. Risk tolerance is made up of many factors from personal preferences to financial realities. We take the time to lay out the risks that come with premium financing and make sure our clients both understand them and are willing to accept them. While many of the risks can be worth the while (especially when pitted against the measures we take to keep your finances safe) at the end of the day, it’s all up to your personal preferences.

The Client’s Understanding of Leverage

  • When we mention “leverage” we’re describing how it can be used as a tool to benefit your estate by borrowing funds instead of paying out of pocket. This comes down to personal preference, once again. Some people are comfortable with leveraged planning while others wish to remain debt-free. Either way, it is great to have a conversation and figure out where you land and how you want to handle your financial future.

Contact RSB Life

There are many people that come together to make a premium financing strategy possible including the client, a financial institution, an insurance company, the clients’ centers of influence and us! Like a great quarterback, we coordinate every member on your team to ensure you get the maximum benefits. We’ve done this for years and we understand how important it is for everything to go according to plan. We also understand what you have on the line and we will invest all of our resources to protect your interests and maximize your overall outcome. Contact us to start a conversation today!