Leveraging means using others people’s money (another term for which is OPM) to fund a financial vehicle such as life insurance or an annuity. Here are the top 10 ways leveraged planning can help your family:
- It’s a great opportunity to accelerate or compress the timeframe as a 1X pay to grow your money quicker.
- Business owners that have S, C, or LLC Corporations can have the loan made out to their corporation instead of them.
- The loan is transferred to the individual at a below market loan rate and then the loan is transferred to the corporation based on the individual loan.
- The loan is corporate based but the policy is individually owned.
- There are two advantages to the individual: #1.There is no personal guarantee to the individual meaning the bank can’t go after the personal assets of the person insured. #2. Corporate loan client pays the interest from the corporate checking account and their personal account, thereby using pretax dollars and reducing taxable income.
- Since this is a business expense they aren’t paying the life insurance premium. They are paying interest on the corporate loan instead.
- Policies can be used for estate tax, wealth transfer, tax-free income for retirement and even business purposes like a buy/sell agreement.
- These policies fulfill multiple functions like reducing income taxes, tax planning strategies, tax free income for retirement, death benefit, chronic illness features for clients to use for long term care giving them the access to an accelerated portion of their death benefits early.
- Strategic Marketing Financial Services specializing in helping walk you through the process from A –Z including talking to the client, their attorneys and even their CPA’s if needed.
- Strategic Marketing Financial Services includes a case design, illustrations, and sceneries to help work with underwriting in different lending platforms so that we can help get you the best deal possible. We insure that the process is streamlined and as efficient as possible so you can focus on what you do best. We quarterback the entire process!
Leveraging is a great opportunity to generate more business, get referrals and make more money! Great ways to understand the program is the Fact Finder Sheet so that clients can see the numbers in action and realize how compelling they really are.