Resilient provides turn-key premium finance services including plan design consulting, insurance brokerage, risk mitigation strategies and plan administration services.
Understanding Premium Finance Transactions
How it works
Resilient is an innovator and disruptor in the premium finance business. We use highly liquid, institutionally priced life insurance products and robust bank financing to fund the personal and business priorities, goals and objectives of our clients.
Our clients need only post the necessary short-fall collateral sufficient to secure bank financing (typically for a period of 6-10 years). Once the cash values in the policy eclipse the accrued loan balance the collateral is released back to the client. Cash Values above the accrued loan balance can be used for virtually any important personal or business purpose including key employee retention, supplemental retirement income, business succession planning, funding of shareholder agreements, cost recovery, and estate liquidity to name a few.
ARBITRAGE
The engine that fuels the premium finance transaction is arbitrage.
When the policy credit is greater than the cost of funds (interest rate) the client is able to take advantage of the price difference between equity and debt markets to create equity in the transaction over time.
If the policy cash value is $10,000,000 at year 10, the premium finance transaction equity would grow by approximately $560,000 during that year.
Premium finance transactions capitalize upon this imbalance to create equity for the client and transaction over time.
the benefit
Our plans create robust survivor benefits for our personal and business clients.
These benefits are typically tax-free and can be used to fund the personal living expenses of the survivors at the death of our insured as well as provide an important cost-recovery benefit to plan sponsors who put capital at risk during the implementation of the plan. Our plans are designed to provide this benefit at anytime during the life of the insured/covered employee sufficient to pay off the loan in full, including any accrued interest, while delivering a tax-free death benefit when it’s needed most.
understanding risk
Premium finance transactions offer our clients an extraordinary opportunity to grow and protect wealth. And while Premium finance transactions are subject to interest rate risk, equity market risk and risk associated with a change in financial position of the borrower, we have some great tools available to mitigate the risk associated with premium finance transactions.
We bring extensive experience and professionalism to every client relationship and customize our services to your individual needs and concerns.
PLAN DESIGN CONSULTING
We can help you design the optimal executive benefit, long-term employee retention and business continuity Plans for your business. And for our individual clients, we offer innovative retirement income solutions and estate liquidity plans. We will design the plan that is right for your personal and business goals, priorities and objectives.
PREMIUM FINANCE
Most high net worth individuals and business have mature planned uses of capital. Our premium finance services allow our clients to purchase important insurance benefits without disrupting existing financial strategies.
INSURANCE BROKERAGE
We have access to the very best insurance companies and insurance products and riders that are tailor-made for the premium finance transaction. We will assist our clients to find the very best products available to help them reach their goals.
PLAN ADMINISTRATION SERVICES
Premium finance transactions must be managed over time like any investment or financial strategy. We offer our clients ongoing guidance and critically important administrative services for the plans we create.
RISK MITIGATION STRATEGIES
Premium Finance transactions have 3 principle risks: Interest Rate Risk, Dividend Interest/Policy Credit Risk, and change in Financial Position Risk. We have developed proprietary risk mitigation strategies to help with these known risks and to also improve the durability of premium finance transactions.
JUMBO CREDIT FACILITY CREATION
Our current credit facility offers up to $100 Million in plan funding per transaction. However, if we need 10-Digit + funding, we can help you secure the required funding your plan requires.