THE SITUATION
Three partners in a successful international retail business didn’t have permanent insurance solutions in place.
Each of them had some term insurance, which not only was expiring but wasn’t enough coverage. The decision behind purchasing term insurance instead of a permanent solution, was not to lose opportunity cost on their capital by paying larger premiums.
The partners also didn’t have a buy-sell agreement in place to protect the future of their business and their loved ones.
ARI’S SOLUTION
Premium Financing: $100M Permanent Coverage for each PARTNer
Working closely with private banking and credit partners, ARI Financial was able to build a diversified whole life insurance portfolio of 300 million dollars for the partners, 100 million dollars for each. By using the bank’s lending platform to finance the premiums, we solved both pressing issues for them:
- acquiring permanent life insurance; and
- business continuity planning through a buy-sell agreement.
With an average 17 million dollars in annual premiums, the total loan amount will grow to over 170 million dollars over the next ten years. And in order to support collateral requirements for the coverage, an additional 30 million dollars in AUM was brought to the bank.
Utilizing a Private Bank’s premium financing platform and strategy, the clients were able to acquire the large block of permanent insurance they needed while preserving the opportunity cost on their money.
ARI Financial Group optimizes and customizes different aspects of the contract depending on each client’s needs. Contact us at info@ari-fg.com for more information on how we can help your clients grow and conserve wealth through personalized service and innovative planning.
