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Use Premium Financing to increase your benefits

Stuart Chamberlin, President

Why you should use premium financing as a leverage to increase your benefits.

Leverage definition is - the action of a lever or the mechanical advantage gained by it.”
— Merriam-Webster

BOCA RATON, FL, US, June 21, 2018 /EINPresswire.com/ -- Leverage is used every day from financing a home using a mortgage or using a credit line for a business. Leverage can be used for a lot more when it comes to insurance products and when it is used it’s called premium financing. Premium Financing involves the lending of funds to a person or company to cover the cost of an insurance premium.

This concept is not much different than using a bank mortgage to leverage assets to purchase a home. Money is borrowed to buy more house (or with premium financing access to more benefits) than one could purchase with assets on hand.

This concept has been used for years by high net-worth individuals who have illiquid assets or they don’t want to use a lot of their working capital to pay life insurance premiums. So instead they financing their premiums through a bank or lending institution at a low interest rate usually close to the LIBOR rate. By doing this they only pay the interest on the premiums being financed and still get the full benefit of the policy.

When using this strategy to finance the premiums of an indexed universal life policy (IUL) you have the potential of growth on the cash value since it’s linked to an index like the S&P 500 without the risk. All of the gains are locked in annually and there are many index strategies to choose from including some that have participation rates as high as 135%.

When the gains on the cash value are greater than the interest being charged on the financing you have what’s called an arbitrage situation. This can also be a more cost effective way to cover additional benefits to attract top talent for a business or to cover a key man policy or succession planning.

Most premium financing strategies are only available for high net-worth individuals with a net-worth of 5 mm or higher. The Kai-Zen strategy is available for individuals earning 150k a year or higher giving them the same advantage high net-worth individuals have been benefiting from for years.

Due to limitations, traditional retirement plans are typically insufficient for high-income earners. If you want to maintain your lifestyle in retirement, you need a proactive strategy that puts more money toward protecting your future income without putting a drain on your current finances.

Kai-Zen is the ONLY strategy that uses leverage to help you acquire more benefits you need to financially protect you and your family. It’s unique fusion of financing and life insurance offers you more protections and the potential to earn more retirement than you could obtain without leverage.

How it Works


The Kai-Zen strategy is simple. Premiums are jointly funded by bank financing and the participant or employer. The bank financing provides the majority of the total contribution to the plan, and the life insurance policy itself is the full security for the loan. This strategy is specifically designed so that the participant is not required to go through financial underwriting or sign loan documents. As an additional protection, Kai-Zen’s structure is also set up protect your benefits in the event of employer bankruptcy.

By using bank financing, the Kai-Zen strategy allows you to realize benefits beyond your expectations while keeping contributions within your means.

The most unique and compelling aspect of the Kai-Zen strategy is that the participant’s contributions are leveraged 3 to 1.

Stuart Chamberlin
Chamberlin Financial
561-962-2775
email us here

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