BankDirect Premium Funding facilitates the completion of our clients’ insurance-related transactions by providing loan solutions within the framework of wealth preservation, wealth transfer, buy-sell agreements, key-man insurance, corporate-owned life insurance, and more.
All we do is life insurance premium financing, which means we will not share in the life insurance commissions, nor will we require clients to transfer assets to us. Additional benefits include:
Eligible borrowers are defined as irrevocable (life insurance) trusts, special purpose limited liability companies and special purpose limited partnerships. The entity should be established for the sole purpose of owning life insurance within the context of either a personal estate/financial plan or within a corporate context. We are comfortable lending to single-purpose entities established as part of a multi-life corporate transaction.
The insured will have to be the grantor/settlor of the trust but cannot be the trustee. In the case of a limited liability company, we are comfortable with the insured being the manager of the special purpose entity.
The beneficiaries of the irrevocable life insurance trust or the limited liability company must have an insurable interest in the life of the insured(s).
The policy owner and beneficiary must be an irrevocable life insurance trust or a limited liability company.
For corporate-owned life insurance transactions, a special, single-purpose entity should be created for the loan transaction.