ARI Blog

Finding an Innovative Solution for Clients During a Time of Crisis


Husband and wife in their early fifties had been looking into investing in life insurance when the pandemic struck. They are both business owners with high opportunity cost on their money. The husband’s business had to shut down due to the pandemic and the wife’s real estate portfolio, with exposure both to the US and Ecuador, was also significantly hit.

Although they were very interested in life insurance in the beginning of 2020, due to COVID-19 they were scared to move forward. Their major concern was having to pledge significant collateral as they wanted to maintain liquidity during these uncertain times.

OUR SOLUTION High Early Cash Value Contracts:

$5M Coverage for Each Spouse

For these clients, the lynchpin of the strategy was maintaining liquidity while getting the coverage they needed. That’s when the High Early Cash Value (HECV) solution came into play, allowing the clients to take advantage of smart credit strategies while minimizing out-of-pocket pledging of collateral.

In this $10 million HECV contract, the client only pledged $20k as collateral and was able to finance the premium of $500k with the policy’s $490k cash value from day one. If the clients don’t access the cash value or even if they borrow against it, the cash value of the policy will continue to grow year over year comparable to an AA+ bond with a multiplier in the case of an untimely demise.

This solution is very attractive to real estate investors interested in maintaining maximum liquidity and opportunity cost on their money.


Private Bankers identified the opportunity and worked together with ARI to find the right solution for their clients. Our partners’ understanding of credit strategies and the clients’ needs was paramount in getting the message across and providing protection for their clients in a time of crisis.

ARI Financial Group optimizes and customizes different aspects of the contract depending on each client’s needs. Contact us at for more information on how we can help your clients grow and conserve wealth through personalized service and innovative planning.

Similar Articles

Leveraging Life Insurance to Pay for College

Have you considered how you can use your life insurance policy to pay for your children’s tuition and expenses?

Life Insurance is an Asset That Must be Managed

Life insurance has traditionally been viewed as a commodity that could largely be ignored once coverage was obtained.

Reviewing Your Life Insurance Policy is Important

During tough economic times, everyone is looking for ways to reduce their cost of living.