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What is Premium Financed Life Insurance?

If you are seeking sensible, smart ways to handle your finances in the present while planning for the future, you’ve likely heard of premium financed life insurance.

You know asset management, retirement planning and death benefits are important, but you may not know how to leverage premium financing in order to reap the benefits.

Let’s break down what premium financed life insurance actually is, and how it can completely transform the way you plan for the future, while benefiting in the now.

How Does Premium Financed Life Insurance Work?

Imagine you need a 7- or 8-figure life insurance policy. Over many years, this self-funded policy costs you tens of thousands of dollars, and earns you nothing. Your main value is the death benefit (which of course, we hope you never need).Alternatively, premium financed life insurance offers tax-free growth and tax-free income during retirement.

Put simply, your money works for you, not someone else. On top of that, premium financing means you get a greater death benefit with the same commitment.

Lastly, this policy offers non-qualified access to your finances (it’s just like a checking account).

So, how does it work exactly? It’s simple:

  1. You contribute a lump premium for 5, 7 or 10 years (instead of a little bit each year).

  2. A lender finances you with a lump sum for investment use.

  3. Your contribution + the lender’s contribution = Investment Capital

Here’s an example:

  1. John needs an $18,000,000 death benefit.

  2. He contributes $50,000/yr for 10 years.

  3. The lender contributes $15,000,000 (using the death benefit as collateral).

  4. Enhanced Funding Solutions manages these funds with an average investment rate of return of 8-15%.

premium financed life insurance - 1 - jeff faine - enhanced funding solutions

Premium Financed Life Insurance Benefits

While the main draw of premium financed life insurance may be the financial enhancement factor, there’s a host of additional opportunities and strategic ways this option can support your wealth building.

  1. Avoid Costly Taxes

When liquidating other investments for cash flow, you get hit with capital gains tax or face gift tax complications. Working with Enhanced Funding Solutions ensures you have tax-free access to your money. EFS eliminates the possibility of extra tax headaches, while streamlining the policy purchase process and the pay-out benefits.

  1. Tax-Free Growth

Enjoy completely tax-free growth on your capital grows in cash value. Unlike some other retirement options, the capital in your policy is earning tax-free.

  1. Low Risk & High Benefits

All financial investments come with some level of risk. This is a lower risk option to include in your diversified investment portfolio. It comes with guaranteed cash value, guess-free access to your money, and a larger death benefit. It’s a smart way to leverage capital without sacrificing a large chunk of your existing finances.


Now that you know what premium financed life insurance is, and how it works, you’re ready to move forward confidently.

When you partner with my company Enhanced Funding Solutions, I take care of all of the frustrating and complicated leg-work so you don’t have to. We work with carrier partners in every state to find and purchase the perfect plan for your needs plus we work with trusted lenders to secure and manage your investment capital. With premium financed life insurance you get to:

  1. Grow wealth while protecting your family

  2. Plan more confidently for retirement

  3. Enjoy the low risk & high rewards that come from using leveraged capital

Reach out to me today to explore your options. I look forward to answering any questions you may have. – Jeff Faine



901 N Lake Destiny Drive, STE 380

Maitland, FL 32751


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