Traditional Premium Finane for Life Insurance

Finance For Life is an industry leader in the traditioanl lending market for life insurance policies.

Traditional loans require a letter of credit from a major bank and interest payments out of pocket to maintain a level death benefit. It is appropriate for clients of any age, seeking a long term plan for significant coverage, or premiums in excess of $150,000 a year. All carriers accept this type of plan. Finance For Life is pleased to broker these loans for your clients through the FFL Loan Advantage Program™.

Finance For LifeSince 2004

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877.763.0098

Finance For Life Offers New Insurance Loans

Clients can finance new or old polices or loans, and Get Cash.

Memphis, TN, October 26, 2010 – Finance For Life Offers New Insurance Loans .

- Get a new loan on existing coverage
- Refinance existing loans on policies
- Finance new policies
- Reasonable interest rates
- Generous cash back on most loans


About Finance For Life
Since its inception in 2005, Finance For Life has experienced growth in both annual revenue and company size. FFL works with the most reputable General Agencies and life insurance premium finance lenders available to insureds of all ages. Finance For Life has brokered nearly 1 billion dollars in death benefit for affluent seniors and their families as well as for affluent younger insureds. Their professional, experienced and dedicated team has earned Finance For Life a reputation of providing exceptional customer service, diligence and utmost respect for client confidentiality and privacy.
Finance For Life also helps facilitate the sale of premium financed and non premium financed life insurance policy portfolios. It has approximately 6 billion of inventory available and works with both buyers and sellers.

To receive more information about Finance For Life,please contact Ronnie Katz or Gershon Yarmush at 877-763-0098.

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Finance For Life Starts Off The 2009 Funding Season With a Bang, Offers Multiple New Hybrid and Traditional Sources

"We are seeing strong new demand from several sources, and are stepping up the generation of new term sheets and closings," comments Company President

Memphis, TN (PRWEB) January 29, 2009 -- Finance For Life, LLC (FFL) announced today that they are pleased to offer three exciting new hybrid sources and three new traditional sources for financing. According to Ronnie Katz, CPA, Company President, "Although the lending market as a whole remains weak, and standards have tightened, demand from Insurers seeking to add to the best part of their balance sheet remains strong.

This drives underwriting, and opens up product, and Funders are stepping in to provide loans. 2008 delivered a fresh reminder of the benefits of having a portfolio that contains some non-correlated assets, and cases that show a solid LTV are getting money." FFL is also seeing some early success with bridge financing or premium finance rescue loans. These loans provide additional funds beyond the term of shorter length hybrid programs and can last as long as the life of the insured.

In difficult times, FFL has been successful in funding hybrid premium finance cases for those 70 and older and has several sources, with unique programs, that provide clients with funding solutions for both short and long term needs. "Time is of the essence in getting cases funded," says Ronnie Katz. "The market is still rebounding and deals are getting done, but if you have an offer, act on it and close it. Resist the temptation to 'shop around.' We've seen many deals slip through agents' fingers, leaving their clients without valuable, low risk coverage."

Katz strongly advises to act now, while funds are available. "Our staff will guide agents through the process from start to finish -- with success." Katz continues, "We also have a large presence in the traditional life insurance premium financing market and have some unique programs for younger insureds that require little out of pocket and provide large benefits with a clear loan exit strategy built in, within the client's lifetime. We currently have hundreds of millions of dollars of traditional cases in process that require no out of pocket and reasonable collateral for individual insureds or groups (such as medical groups or law firms) needing $10 million or more of life insurance coverage."

FFL has built its name on successful funding of cases, having seen over $10 billion of face amount and having assisted in the funding of over $1 billion of policies. FFL continues to service its clients with unsurpassed customer service and excellent communications.

About Finance For Life:

Founded in 2004 by Ronnie Katz, CPA, Finance For Life was created to eliminate the confusion and red tape that often accompanies premium financing. FFL prides itself on being able to offer a variety of life insurance premium financing solutions, including hybrid premium financing for senior clients and traditional premium financing for all ages. Whether your case is large, small or difficult to finance, the experienced team at FFL will find the premium financing that fits your specific needs.

To receive more information about Finance For Life, please contact Ronnie Katz or Gershon Yarmush at 877-763-0098 or by email, info@financeforlife.com, or visit our website http://www.financeforlife.com.

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Life Insurance Premium Financing Parameters

At Finance For Life we can get your case closed. We'll educate you about which cases work best. Call today to get the parameters for lending plans that are successfully funding currently. We know life insurance and we know life insurance premium financing. We have seen over $10 billion of death benefit since our inception.

877.763.0098
http://www.financeforlife.com/
info@financeforlife.com

Premium Financing Cases Getting Funded With Great Success

FOR IMMEDIATE RELEASE
Finance For Life Takes In Record Number of Policies For financing in October and November
“We’ve had overwhelming success in getting cases funded,” Comments Company President
Memphis, TN, November 7, 2008, Finance For Life, LLC (FFL) announced today that they have taken in a record number of life insurance premium finance cases in October and to date in November. According to Ronnie Katz, CPA, Company President, “Due to relationships forged with our lenders before the economic decline and change in mortality calculations by life expectancy companies, we are still able to get cases funded. Our relationships are with solid lenders that are able to withstand the current market challenges.”
In difficult times, FFL has been successful in funding hybrid premium finance cases for those 70 and older and has several sources, with unique programs, that provide clients with a funding solution for short and long term needs. “Time is of the essence in getting cases funded,” according to Ronnie Katz. “Year-end underwriting and carrier’s wanting to fund premiums before the end of 2008 make the remaining months ripe for funding policies. Our lenders have allocated enough funds to get our clients’ cases funded before the end of the year.
Katz strongly advises to act now, while funds are available. “Our staff will guide agents through the process from start to finish – with success.” Katz continues, “We also have a large presence in the traditional life insurance premium financing market and have some unique programs worthy of looking in to. We currently have hundreds of millions of dollars of traditional cases in process that require no out of pocket and reasonable collateral for individual insureds or groups (such as medical groups or law firms) needing $10 million or more of life insurance coverage.”
FFL has built its name on successful funding of cases, having seen over $10 billion of face amount and having assisted in the funding of over $1 billion of policies. FFL continues to service its clients with unsurpassed customer service and excellent communications.
About Finance For Life
Founded in 2004 by Ronnie Katz, CPA, Finance For Life was created to eliminate the confusion and red tape that often accompanies premium financing. FFL prides itself on being able to offer a variety of life insurance premium financing solutions, including hybrid premium financing for senior clients and traditional premium financing for all ages. In addition, FFL’s ‘Beat The Street’ Programs earns producers higher commissions on their cases. Whether your case is large, small or difficult to finance, the experienced team at FFL will find the premium financing that fits your specific needs.
To receive more information about Finance For Life, please contact Ronnie Katz, Company President at 877-763-0098 or by email, info@financeforlife.com Web: http://www.financeforlife.com/

Life Expectancy Debacle Not A Problem For Finance For Life Clients

Finance For Life continues to fund cases with existing 21st LE’s

Memphis, TN, September 18, 2008: Finance For Life, LLC announced today that it has lending programs that will accept existing 21st Services life expectancy reports issued before the September 16th adjustment date. In addition, Finance For Life has several lending programs which do not rely on LE’s at all or on LE’s other than 21st.

Per Ronnie Katz, CPA, President of Finance For Life, “Finance For Life always strives to represent a variety of lenders to suit our clients’ needs. Thus, under stressed market conditions, or in instances such as where LE companies make adjustments to their calculations, we are able to continue to get cases funded. As a result, we have successfully funded a record number of cases throughout the year.”

Finance For Life provides life insurance premium financing solutions to life insurance producers, general agencies, financial advisors and individuals.
In addition, Finance For Life assists with agent case processing, case consulting, sales assistance and life insurance sales. Amongst its many product lines are loans for all ages, including comprehensive solutions for ages 20 to 69, hybrid loans for those 70 and older and the Beat The Street compensation program for producers.

For more information please contact Ronnie Katz or Gershon Yarmush direct:

Email: rkatz@financeforlife.com
gyarmush@financeforlife.com
Phone: 901.763.0098
877.763.0098 (toll free)
Web: www.financeforlife.com

Finance For Life: Recap of August Activity

The following is a brief sampling of the August activity at Finance For Life.

Finance For Life Announces New Company Hires

Premium Finance Leader Adds Key Positions To Growing Staff

Finance For Life, an industry leader in premium finance since 2005, announced the addition of several new company hires. They are:

Tina England joins Finance For Life as Executive Assistant. She has a strong background in paralegal work and office administration. Ms. England will act as the personal assistant to the President, Ronnie Katz, and will handle most of the duties relating to office management.

Rachel McKinley joins Finance For Life as Case Pricing Specialist. She will handle case pricing, case manager assistance and order specialized reports and records. Ms. McKinley will work under the direction of Gershon Yarmush, Vice President Of Operations for Finance For Life.

According to Ronnie Katz, CPA and President of Finance For Life, “We have seen more cases through the midway point of 2008 than we saw in all of 2007. As a result, we are adding staff to assure efficient operation and case processing.”


Finance For Life Continues to Add Insurance And Financing Services to Existing Product Line

Premium Finance Leader Adds New Products and Expands Services to Accommodate Client Needs

Finance For Life today announced it has recently added several new products and services to its existing array of programs and services, including:

• “Beat The Street” Program: Program designed to facilitate highest commissions available to high end producers facilitated through FFL’s excellent relationships with top GA’s.
• Case Consulting & Processing: FFL will thoroughly review producers’ cases, process them and interact with the GA from underwriting through getting the policy placed.
• Sales Assistance: FFL will assist producers in sales of both traditional and premium financed products, by assisting in direct meetings with the client.
• Life Insurance Sales: Life Insurance sales – for both traditional insurance needs and premium finance.

Ronnie Katz, CPA and President of Finance For Life comments on the expansion, “We are adding to our existing products and services to meet the demands of our expanding client base. Due to our excellent relationships with GA’s and premium finance lenders, we are able to offer agents more compensation and better results in getting cases successfully premium financed. We have added staff to assure efficient operations and the very best in customer service and support.”

About Finance For Life

In addition to the growing staff, Finance For Life continues to add life insurance and financing services to better serve its clients. FFL now offers life insurance sales, case processing, premium financing, case design, and sales assistance. The company works with the most reputable and flexible providers of life insurance loans available to seniors. Finance For Life has brokered nearly 1 billion dollars in death benefit for affluent seniors and their families. Their professional, experienced, and caring team has led to a reputation for exceptional customer service, diligence, and utmost respect for client confidentiality and privacy.

To speak to a representative or to find out more information on premium financing, please contact a representative at Finance For Life:

Phone: 877-763-0098
Email info@financeforlife.com

Finance For Life Continues to Add Insurance And Financing Services to Existing Product Line

Premium Finance Leader Adds New Products and Expands Services to Accommodate Client Needs

Memphis, TN, August 13, 2008 – Finance For Life today announced it has recently added several new products and services to its existing array of programs and services, including:

• “Beat The Street” Program: Program designed to facilitate highest commissions available to high end producers facilitated through FFL’s excellent relationships with top GA’s.
• Case Consulting & Processing: FFL will thoroughly review producers’ cases, process them and interact with the GA from underwriting through getting the policy placed.
• Sales Assistance: FFL will assist producers in sales of both traditional and premium financed products, by assisting in direct meetings with the client.
• Life Insurance Sales: Life Insurance sales – for both traditional insurance needs and premium finance.

Ronnie Katz, CPA and President of Finance For Life comments on the expansion, “We are adding to our existing products and services to meet the demands of our expanding client base. Due to our excellent relationships with GA’s and premium finance lenders, we are able to offer agents more compensation and better results in getting cases successfully premium financed. We have added staff to assure efficient operations and the very best in customer service and support.”

About Finance For Life
Since its inception in 2005, Finance For Life has experienced growth in both annual revenue and company size. FFL works with the most reputable General Agencies and life insurance premium finance lenders available to insureds of all ages. Finance For Life has brokered nearly 1 billion dollars in death benefit for affluent seniors and their families and those of all ages. Their professional, experienced and dedicated team has earned Finance For Life a reputation of providing exceptional customer service, diligence and utmost respect for client confidentiality and privacy.

To speak to a representative or to find out more information on Finance For Life’s products and services, please contact a representative at:

Phone: 877-763-0098
Email info@financeforlife.com

Growth Continues for Finance for Life

(As seen in Memphis Daily News, August 4,2008 Edition)


ERIC SMITH | The Daily News


Ronnie Katz started Finance for Life in 2004 in a tiny East Memphis office. The company now employs 15 and operates in 9,200 square feet in the SunTrust Building. --
It’s easy to track the growth of Finance for Life, the premium finance brokerage firm that Ronnie Katz launched in 2004 as a one-man operation in a 120-square-foot office on June Road in East Memphis.

The company has expanded steadily over the past four years: In 2005 Katz added three employees and moved into an office six times as big as the shoebox where he began; in 2006 he added new employees and moved to 9,200 square feet in the SunTrust Building on Poplar Avenue; and within the past few weeks, more personnel came aboard, bringing Finance for Life’s total to 15 employees.

But Katz’s company has prospered in quantifiable categories other than office square footage and payroll.

Since its inception, Finance for Life (www.financeforlife.com) has processed more than $10 billion in life insurance policies and brokered nearly $1 billion in death benefits for affluent seniors and their families. In 2007 it closed $15 million of target premium – what a policyholder pays on life insurance – and through June 30 of this year, Finance for Life already had surpassed that total with expectations of hitting $30 million by year’s end.


MEETING TIME: Since its inception, Finance for Life has processed more than $10 billion in life insurance policies and brokered nearly $1 billion in death benefits for affluent seniors and their families. Here, the staff members meet in the board room of its Poplar Avenue offices.

For Katz, all the growth is the result of getting into the business at the right time, when few companies locally or nationally were offering such a niche array of financial services.

“I knew it was a great opportunity, and I knew there was a great need for it,” said Katz, who worked as a certified public accountant in the area for 24 years before starting the company. “But things accelerated much quicker than I possibly could have imagined.”

Hot market
Premium financing is basically a loan that helps someone pay for their life insurance, hence the name of the company. Financing life insurance premiums can benefit someone planning an estate, retaining assets or establishing charitable donations. It’s geared toward seniors and high net worth individuals of all ages.

Finance for Life offers life insurance sales, case processing, premium financing, case design and sales assistance, working with numerous providers of life insurance loans. Katz said when he first started talking about these products – even to legal and financial professionals – most people didn’t know anything about them. That’s changed in the past four years.

“What’s happened over time is it’s become much more of a popular concept,” he said. “Premium financing is very hot right now for those who have a lot of assets but don’t necessarily have a lot of cash, so they’re looking for ways to get the insurance they need on their appreciated assets for estate planning purposes.”

The key is diversity and innovation for consumers and the life insurance professionals who become Finance for Life clients.

“No one likes the idea of forking up cash for life insurance,” Katz said. “We have strategies where we show clients how they can get this life insurance, not fork up cash, keep their cash invested and still get the kind of coverage they need. There’s a great need for that.”

Key location
Katz said the company started out in the senior market with specialized loan programs for those 70 and older, later branching into financing of policies for all ages. The timing was critical, as more and more baby boomers began to age.

“We got in very early, and we established ourselves across the country through a lot of Internet marketing, national advertising in magazines and getting our name in articles, which is always very helpful,” he said.

Katz’s management team includes vice president of operations Gershon Yarmush and closing manger Marvin Rubenstein. Finance for Life’s largest markets are Southern California, South Florida, Texas and New York, with relatively few clients in the company’s hometown.

“Memphis is a very centrally located place to work from,” he said. “Dollar-wise, overhead-wise, it makes a lot of sense to be here. But very little of our business comes from Memphis.”

Katz hopes that will change, hence the hiring of additional sales staff with potentially more on the way. With the success the company has enjoyed in 2008 already, it seems likely that Finance for Life will eventually double to Katz’s goal of 30 employees.

“I don’t know that I see any extreme growth spurts like we saw this year, but I see steady growth and a continued demand for life insurance,” Katz said. “For our company, I see a continued growth trend, similar to what we’ve seen this year – not so much with the same products, but with an addition of products and with different strategies.”

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Finance For Life In The News

(As published in the Memphis Daily News, August 4, 2008 edition)


http://www.memphisdailynews.com/editorial/Article.aspx?id=38036

Finance For Life Announces New Company Hires

Premium Finance Leader Adds Key Positions To Growing Staff

Memphis, TN, July 29, 2008 – Finance For Life, an industry leader in premium finance since 2005, announced the addition of several new company hires. They are:

Tina England joins Finance For Life as Executive Assistant. She has a strong background in paralegal work and office administration. Ms. England will act as the personal assistant to the President, Ronnie Katz, and will handle most of the duties relating to office management.

Rachel McKinley joins Finance For Life as Case Pricing Specialist. She will handle case pricing, case manager assistance and order specialized reports and records. Ms. McKinley will work under the direction of Gershon Yarmush, Vice President Of Operations for Finance For Life.

According to Ronnie Katz, CPA and President of Finance For Life, “We have seen more cases through the midway point of 2008 than we saw in all of 2007. As a result, we are adding staff to assure efficient operation and case processing.”

About Finance For Life
In addition to the growing staff, Finance For Life continues to add life insurance and financing services to better serve its clients. FFL now offers life insurance sales, case processing, premium financing, case design, and sales assistance. The company works with the most reputable and flexible providers of life insurance loans available to seniors. Finance For Life has brokered nearly 1 billion dollars in death benefit for affluent seniors and their families. Their professional, experienced, and caring team has led to a reputation for exceptional customer service, diligence, and utmost respect for client confidentiality and privacy.

To speak to a representative or to find out more information on premium financing, please contact a representative at Finance For Life:

Phone: 877-763-0098
Email info@financeforlife.com

Getting More Sales Milaege With Hybrid Financing

Written by Gershon Yarmush
(Originally published in the July issue of Agent Sales Journal)

Everyone is talking about hybrid premium financing — but what is it exactly, how does it benefit clients, and how do agents sell it? What does hybrid even mean when used in an insurance context? The following is a short explanation of what hybrid premium financing is, how it evolved, and the proper way to sell it.

Understanding the conceptIn order to properly discuss hybrid loans, we need to have a basic familiarity of how the old non-recourse loans worked. Non-recourse loans for life insurance first became mass marketed and popular with the public in early 2001. Agents approached a senior of reasonable health and with assets usually in excess of $5 million and offered to get them a loan for a substantial life policy with no recourse to them. How was this possible? You and I both know that when a bank loans a prospective home buyer hundreds of thousands, if not millions, of dollars for the purchase of a home, they require security — or at least they did before the present sub-prime mess. This security is usually the home that the loan is being made against, with a thorough investigation conducted by the bank to ensure that the home is worth more than the amount they are lending, should the borrower default. Life insurance loans also need the same level of security.

With traditional premium finance insurance loans, which have been around for decades, the collateral is an outside asset, usually a letter of credit, collaterally assigned bank CD, or real estate. In a non-recourse loan, the object of the loan (i.e. the new life insurance policy being purchased), acted as the collateral for the bank. The bank or a premium finance promoter acting for the bank conducted a strict actuarial review to determine the policy’s worth at the loan term period, which was typically two years. By using the term “policy worth,” I am not referring to its cash surrender value or its death benefit, but rather its predicted future settlement value at the two-year mark. This value must be greater than the amount loaned or the collateral is deemed insufficient and the loan is not made.

Sometimes, the collateral value was deemed to be in such excess that an additional loan was made in the form of a cash advance to the borrower. Typically, these transactions also featured no out-of-pocket costs, with all interest and fees rolled into the loan. Needless to say, the math was good and insureds bought in like hot cakes.

However, although sales of this type of insurance product were brisk for several years, in December 2005, sales slowed tremendously and insurers started denying applications. The insurers had several concerns. For one, they felt their products were being sold as free insurance to clients who had no skin in the game and were therefore more likely to let their policies travel to the settlement market. This, they claimed, impacted their lapse ratios. Second, since the funders were not actually collecting fees and interest on these deals upfront from the clients, they felt justified charging a very high interest rate and high fees, as the money would only come out of the profit on a backend sale. Insurers didn’t like the thought of their clients being gouged and felt the steep exit costs would further force more of the paper onto the secondary market. The market got the message and evolved to meet new carrier requirements and continuing demand by developing hybrid premium finance.

What does ‘hybrid’ mean? In an insurance premium finance context, “hybrid” refers to the collateral underlying the loan made to purchase the insurance. In a pure non-recourse transaction, the policy alone serves as the collateral for the loan, while in a hybrid loan, the collateral is supplanted with upfront out-of-pocket interest payments or partial personal guarantees. This “skin in the game” has gone a long way toward assuaging carrier concerns that the insureds lack a personal stake in the policy purchase. Since the clause allowing the client to “walk away from the debt” has been removed, the client will suffer a real financial loss if they do not meet their loan obligation. The matter of the high interest rates and fees has worked itself out, as well, through increased market competition for these loans. Funders who have stayed in and those who entered the market post-2005 have reduced these fees considerably and removed onerous prepayment clauses and restrictive settlement broker “lock-ins” in order to compete with each other. Historically, most of these loans are also based on a simple spread above prime or LIBOR, which right now is quite low. The rates charged on loans today are usually in the 6.5 to 9.5 percent range, as opposed to the 2003-04 era, when they were effectively as high as 16 to 18 percent or more. The evolution of the loans has also included an extension of the loan terms. While the old loans were in force for two years or 30 months, the new loans allow for the original two-year commitment to be extended for up to seven years with some programs, provided that a re-evaluation of the collateral proves it to still be sufficient.
What are the benefits? The purchase of a life insurance policy utilizing a hybrid loan has many benefits to insureds. It allows them to get into a valuable insurance product while they are relatively healthy, with little out-of-pocket expense. This is especially important to “land rich, cash poor” clients who have a well-defined need but poor cash flow.

The collateralization aspect is not as burdensome as a traditional loan because the use of a partial personal guarantee and the policy’s secondary market value do not encumber any other specific assets. The hassle and costs of applying for a letter of credit can be forgone, as well. Hybrid loan terms and documents are extremely client-friendly.

As an agent, there is tremendous profit to be made, as well. These cases are not run-of-the-mill term cases. Each successfully completed case will result in a payout based on the sale of a permanent product, to a senior, in excess of $5 million in face value and with targets ranging from the low end of $150,000 to the high end of $3 million to $4 million, as we have seen on some $60 million face cases on clients in their late 70s to early 80s. Even after the agent splits the commission with the funder and broker, as is required with all hybrid deals, the producer is usually left with a substantial case share of 55 to 70 percent.

Preparing the caseBefore you arrange sales meetings, you have to properly qualify your clients. Most hybrid finance providers are looking for cases on seniors in reasonable health who own policies with face amounts of $5 million or more. While that may seem like a pretty narrow set of criteria, submitting other cases may result in a lot of wasted time, as it can take four to eight weeks just to qualify the case enough for a “no.”

Pros and consWhen you are finally in front of a qualified prospect, you must properly apprise him of the pros and cons. For one, the transaction is by no means free or devoid of risk, and the client will definitely not be receiving any upfront payments. It will be a long process — from the preliminary meeting to final close can be as long as six months, four if you are lucky. It is a shorter-term loan, usually with no out-of-pocket expense, but the options and exit strategies at the end of the term should be discussed, be it loan payoff, refinance or re-evaluation, or posting of additional collateral. Some of your clients may be interested in the secondary market as a liquidation option, but must be warned that if they sell their policy, their capacity to purchase future estate coverage will be jeopardized, as policies count towards insurable capacity no matter who the present owner may be. Of course, a tax professional should be consulted, as well.
Hybrid premium financing is a fancy name for a tool that gives producers access to the high-target, high-face-value senior market. Hybrids are also a great way for seniors to get a large policy started with low startup costs and low risk to their existing capital and should be considered by advisors in the planning process.

Gershon Yarmush is vice president of operations for Finance for Life LLC. He can be reached at 901-763-0098 or by email: info@financeforlife.com.

More Insurance Sales Mileage With Hybrid Financing.

More Insurance Sales Mileage With Hybrid Financing.
By Gershon Yarmush
Finance For Life, LLC

Everyone is talking about hybrid premium financing. But what is it exactly, how does it benefit clients, and how do agents sell it? What does hybrid even mean when used in an insurance context? The following is a short explanation of what hybrid premium financing is, how it evolved, and the proper way to sell it.

In order to properly discuss hybrid loans, we need to have a basic familiarity of how the old non-recourse loans worked. Non-recourse loans for life insurance first became mass marketed and popular with the public in early 2001. Agents approached a senior, of reasonable health and with assets usually in excess of five million dollars and offered to get them a loan for a substantial life policy with no recourse to them. How was this possible? You and I both know that when a bank loans a prospective home buyer hundreds of thousands, if not millions of dollars for the purchase of a home, they require security. (Or at least they used to, in the more sane world that existed before our present subprime mess.) This security is usually the home that the loan is being made upon, with a thorough investigation conducted by the bank to ensure that the home is worth more than the amount they are lending, should the borrower default. Life insurance loans also need the same level of security.

With traditional premium finance insurance loans, around for decades, the collateral is an “outside” asset, usually a letter of credit, collaterally assigned bank CD or real estate. In a non-recourse loan, similar to our home loan example, the object of the loan, i.e. the new life insurance policy being purchased, acted as the collateral for the bank. The bank, or a premium finance promoter acting for the bank, conducted a strict actuarial review to determine the policy’s worth at the loan term period, which was typically two years. By using the term “policy worth” I am not referring to its cash surrender value or its death benefit, but rather its predicted future settlement value at the two year mark. This value must be greater than the amount loaned or the collateral is deemed insufficient and the loan is not made. Sometimes the collateral value was deemed to be in such excess that an additional loan was made, in the form of a cash advance to the borrower. Typically these transactions also featured no out of pocket costs, with all interest and fees rolled into the loan. Needless to say, the math was good and insureds bought in like hotcakes.

However, although sales of this type of insurance product were brisk for several years, in December of 2005, sales slowed tremendously and insurers started denying applications. The insurers had several concerns. One, they felt their products were being sold as free insurance to clients who had no skin in the game, and were therefore more likely to let their policies travel to the settlement market. This they claimed impacted their lapse ratios. Second, since the funders were not actually collecting fees and interest on these deals upfront from the clients, they felt justified charging a very high interest rate and high fees, as the money would only come out of the profit on a backend sale. Insurers didn’t like the thought of their clients being gouged, and felt the steep exit costs would further force more of the paper onto the secondary market. The market got the message and evolved to meet new carrier requirements and continuing demand by developing hybrid premium finance.
By now, most of you have seen a Prius or two driving around your neighborhood, or you may even own one yourself. The car, one of the first hybrid models on the market, has been a fast seller amongst consumers interested in lowering their gas expenses. It is called a hybrid car because it has two different parts that perform the same function; the combustion engine runs off ordinary gasoline and the electric motor that runs off a battery pack. Both of them work together to make the auto function.
Hybrid, in an insurance premium finance context, refers to the collateral underlying the loan made to purchase the insurance. While in a pure non-recourse transaction the policy alone serves as the collateral for the loan, in a hybrid loan the collateral is supplanted with upfront out of pocket interest payments and/or partial personal guarantees. This “skin in the game” has gone a long way toward assuaging carrier concerns that the insureds lack a personal stake in the policy purchase. Since the clause allowing the client to “walk away from the debt” has been removed, the client will suffer a real financial loss if they do not meet their loan obligation. The matter of the high interest rates and fees has worked itself out as well through increased market competition for these loans. Funders who have stayed in and those who entered the market post 2005, have reduced these fees considerably and also removed onerous prepayment clauses and restrictive settlement broker “lock-ins,” in order to compete with each other. Historically most of these loans are also based on a simple spread above Prime or LIBOR, which right now is quite low. The rates charged on loans today are usually in the 6.5-9.5% range, as opposed to the 2003-04 era where they were effectively as high as 16-18%, or more. The evolution of the loans has also included an extension of the loan terms. While the old loans were two years or thirty months, the new loans allow for the original two year commitment to be extended for up to seven years with some programs, provided that a re-evaluation of the collateral proves it to still be sufficient.

The purchase of a life insurance policy utilizing a hybrid loan has many benefits to insureds. It allows them to get into a valuable insurance product, while they are relatively healthy, with little out of pocket. This is especially important to “land rich, cash poor” clients who have a well defined need, but poor cash flow. The collateralization aspect is not as burdensome as a traditional loan because the use of a partial personal guarantee and the policy’s secondary market value does not encumber any other specific assets. The hassle and costs of applying for a letter of credit can be forgone as well. Hybrid loan terms and documents are extremely client friendly.

As an agent, there is tremendous profit to be made as well. These cases are not run of the mill term cases. Each successfully completed case will result in a payout based on the sale of a permanent product, to a senior, in excess of five million in face and with targets ranging from the low end of $150,000 to the high end of $3-4,000,000, as we have seen on some sixty million dollar face cases on clients in their late 70’s to early 80’s. Even after the agent splits the commission with the funder and broker, as is required with all hybrid deals, the producer is usually left with a substantial case share of 55-70%.

Before you arrange sales meetings, you have to properly qualify your clients. Most hybrid finance providers are looking for cases on seniors (ages 65-89), in reasonable health (standard risk or better), that have face amounts in the five million plus range. While that may seem like a pretty narrow set of criteria, submitting cases outside of that box may result in a lot of wasted time, as it can take 4 to 8 weeks just to qualify the case enough for a “no.” That being said, we have received approvals on clients as young as sixty two and a half (albeit for nine million of face) and a table E rating (over seventy for ten million). So a good broker can advise you when it pays to stretch the box.

When you are finally in front of a qualified prospect, you must properly apprise him of the pros and cons. The transaction is by no means free or no risk insurance and the client will definitely not be receiving any upfront payments. It will be a long process; from the preliminary meeting to final close can be as long as six months, four if you are lucky. It is a shorter term loan, usually with no out of pocket, but the options and exit strategies at the end of the term should be discussed, be it loan payoff, refinance or reevaluation or posting of additional collateral. Some of your clients may be interested in the secondary market as a liquidation option, but must be warned that if they sell their policy their capacity to purchase future estate coverage will be jeopardized, as policies inforce on their lives count towards insurable capacity no matter who the present owner may be. Of course, a tax professional should be consulted as well.

Good brokers play an important role in navigating you through this new world of hybrid premium financing, so don’t try to do it solo. Their job is to facilitate these transactions, simplify and explain programs and allow agents to be assured that they are receiving the best loan package for their clients. Brokers also vet programs to ensure they meet carrier specifications and that they are competitive. Distributors and aggregators speak the language of the funders and know how to present and negotiate cases, ensuring a high placement ratio. They also ensure that the fees and interest being charged to the client are fair, and their agents are receiving the most competitive compensation.

To summarize, hybrid premium financing is a fancy name for an exciting tool that gives producers access to the high target, high face senior market. Hybrid is also a great way for seniors to get a large policy started with low startup costs and low risk to their existing capital and should be considered by advisors in the estate and financial planning process.

To receive more information about the premium financing programs that are available contact Gershon Yarmush, Vice President of Operations at
877-763-0098 or email: info@financeforlife.com.

Finance For Life, Premium Finance Leader, Launches New Web Site

Memphis, TN, April 29, 2008 – Finance For Life, a leader in the premium financing industry announced today the launch of its newly designed web site, www.financeforlife.com. In addition to showcasing the company and profiling its talented employees, the site highlights Finance For Life’s premium financing products, and relevent Frequently Asked Questions (FAQ’s).

The site offers agents, advisors and individuals clear and informative solutions to various financing programs including Senior, Hybrid, Recourse, and Traditional premium financing. The site also informs and educates the consumer on the subject of premium financing. The following is an excerpt from the new site:

“Premium financing is a tool that allows you to put in force a large life insurance policy on your life to benefit your heirs, estate, business or favorite charity. When utilizing a loan from a specialty lender or bank, the collateral required is very reasonable and usually takes the form of a personal guarantee for a small percentage of the loan used to fund your policy. In most cases, no letter of credit or other assets are required to be pledged as collateral. For most seniors, there are no out of pocket costs required initially, allowing you to get the coverage you need, while you are healthy, without the financial burden of writing a large check or pledging important assets.”

Whether you are an individual in need of premium financing or you are an agent representing your client’s premium financing, the site is informative, extremely user friendly and easy to navigate. What makes this site unique is that it caters to either the individual, or the life insurance agent and advisor. When visitors enter the FFL Site (www.financeforlife.com), they are given 2 options:

· Individuals & Families (seeking premium financing)
· Agents & Advisors (seeking premium financing for the clients)

By offering these two options, visitors can educate themselves not only about the unique programs offered by Finance For Life, but also important and relevent information about premium financing.

The New Web Site Includes the Following New Features
· Easy navigation for searching
· New images and clearer graphics
· Fillable application forms
· Resources and information about premium financing
· Company and employee profiles

About Finance For Life
Finance For Life is a full service Life Insurance Premium Finance Brokerage firm. They work with the most reputable and flexible providers of life insurance loans available to seniors. Finance For Life has brokered nearly $1 billion dollars in death benefit for affluent seniors and their families. Their professional, experienced, and caring team has a reputation for exceptional customer service, diligence, and utmost respect for client confidentiality and privacy.

To speak to a representative or to find out more information on premium financing, please contact a representative at 877-763-0098 or email: info@financeforlife.com.

Ronnie Katz, CPA, President of Finance For Life Selected to Million Dollar Round Table’s ‘Top Of The Table’

Memphis, TN, April 17,2008—Ronnie Katz, CPA and President of Finance For Life, has been selected as an exclusive member of the Million Dollar Round Table (MDRT)-Top Of The Table. The MDRT, the premiere association of financial professionals, is an international, independent association of more than 35,000 members. This equates to less than one percent of the world’s most successful life insurance and financial service professionals. The number encompasses 476 companies and 76 nations.

“Our life insurance premium financing programs are a vital component in the estate and financial plans of seniors throughout the United States.” Says Ronnie Katz, “Having been involved in assisting mainly senior clients with the financing of nearly $1 billion of life insurance, I am proud to join the ranks of the nation’s top insurance producers.”

MDRT members demonstrate exceptional professional knowledge, strict ethical conduct, and outstanding client service. MDRT is recognized as the standard of sales excellence in the life insurance and financial services industry

About Mr. Katz
Ronnie Katz, CPA, is the President of Finance For Life, LLC. He began his career in public accounting and spent over 20 years as a partner in the CPA firm, Katz & Co before founding Finance For Life and has experience in personal advisory services and financial and estate planning. He is a licensed life insurance agent and has decades of experience counseling agents and clients in the affluent senior market. His years as a personal producer and entrepreneur have helped him create customer focused programs that aid and assist consumers with a maximum of efficiency and profitability. He is a member of the American Institute of Certified Public Accountants, the Tennessee Society of Certified Public Accountants, the Memphis Estate Planning Council, the National Ethics Bureau, and most recently the Million Dollar Round Table-Top Of The Table. Mr. Katz also serves on the boards of several charitable and non profit organizations.

To reach Ronnie Katz or to find out more information about Finance For Life, contact 877-763-0098 or email info@financeforlife.com

Ronnie Katz, CPA, President of Finance For Life Selected to Million Dollar Round Table’s ‘Top Of The Table’

Memphis, TN, April 17,2008—Ronnie Katz, CPA and President of Finance For Life, has been selected as an exclusive member of the Million Dollar Round Table (MDRT)-Top Of The Table. The MDRT, the premiere association of financial professionals, is an international, independent association of more than 35,000 members. This equates to less than one percent of the world’s most successful life insurance and financial service professionals. The number encompasses 476 companies and 76 nations.

“Our life insurance premium financing programs are a vital component in the estate and financial plans of seniors throughout the United States.” Says Ronnie Katz, “Having been involved in assisting mainly senior clients with the financing of nearly $1 billion of life insurance, I am proud to join the ranks of the nation’s top insurance producers.”

MDRT members demonstrate exceptional professional knowledge, strict ethical conduct, and outstanding client service. MDRT is recognized as the standard of sales excellence in the life insurance and financial services industry

About Mr. Katz Ronnie Katz, CPA, is the President of Finance For Life, LLC. He began his career in public accounting and spent over 20 years as a partner in the CPA firm, Katz & Co before founding Finance For Life and has experience in personal advisory services and financial and estate planning. He is a licensed life insurance agent and has decades of experience counseling agents and clients in the affluent senior market. His years as a personal producer and entrepreneur have helped him create customer focused programs that aid and assist consumers with a maximum of efficiency and profitability. He is a member of the American Institute of Certified Public Accountants, the Tennessee Society of Certified Public Accountants, the Memphis Estate Planning Council, the National Ethics Bureau, and most recently the Million Dollar Round Table-Top Of The Table. Mr. Katz also serves on the boards of several charitable and non profit organizations.

To reach Ronnie Katz or to find out more information about Finance For Life, contact 877-763-0098 or email info@financeforlife.com

Finance For Life, Premium Finance Industry Leader, Continues Getting Cases Funded Despite Industry Turmoil

Memphis, TN, April 11, Finance For Life, LLC, announced today that it continues to maintain credible funding sources for life insurance premium financing programs for seniors. In an apparent shut down of several funding sources, it has been noted that as many as six lenders have lost their funding sources or have had a delay in receiving their funding. This has caused a sudden and unexpected cessation of the funding of many life insurance premium finance cases. Agents and their clients have been left in shock and are scrambling to find reliable funders.

Ronnie Katz, CPA, President of Finance For Life announced, “Finance For Life has confirmed with several of its funding sources that cases are continuing to fund in spite of the recent news. Finance For Life deals only with credible funding sources that go to great lengths to assure their funding is solid and that they maintain good carrier relationships. Our lenders are able to do this because they have instituted proper due diligence procedures to assure that both submitting producers and cases are credible. Finance For Life also performs its own in-house due diligence process in dealing with producers and advisors to maintain the utmost integrity in dealing with lenders and carriers.”

Finance For Life is committed to excellence in service and personal and professional attention to all cases. As such, Finance For Life is positioned to absorb a substantial case load for those looking to place cases that lenders have been unable to fund.
About Finance For Life
Founded in 2004 by Ronnie Katz, CPA, Finance For Life was created to eliminate the confusion and red tape that often accompanies premium financing. FFL prides itself on being able to offer a variety of life insurance premium financing solutions, including Hybrid premium financing. Whether your case is large, small or difficult to finance, the experienced team at FFL will find the premium financing that fits your specific needs.

To receive more information about Finance For Life, please contact Ronnie Katz, Company President at 877-763-0098 or by email, info@financeforlife.com

Closing Proceedures In Premium Financing

The closing process for a premium financed insurance policy can be expedited smoothly and with little stress by opening the lines of communication with the closing manager of the Broker. Generally, the steps to follow in the closing process are similar to most lenders offering financing for clients. The agent, representing the client in this matter, can speed up the process by providing the necessary documents to the Broker in a timely manner.

Steps to Closing:

1. Agent is required to have the client sign a Term Sheet, the basic information concerning the general terms and conditions of the loan approved by a lender and agreed to by the insured.
2. Agent is required to have the client complete and sign a Trust Questionnaire. This is the basis for the establishment of an irrevocable trust that includes the names of beneficiaries, etc. This irrevocable trust will become the owner and beneficiary of the insurance policy that is to be funded by the lender. Items number one and two must be submitted to the broker for processing.
3. Agent is required to work with the client to accurately complete the insurance carrier application and illustration, approved by the lender, and signed by the client as the insured and not owner. In addition, the agent must provide a photo ID of the client along with another form of identification and return to the Broker for processing.
4. Lender will provide the broker/agent with an Irrevocable Trust document, based on the information provided by the client, along with Loan Documents that detail the financing of the policy that is being sought. Both the signed and notarized Trust and Loan Documents will be returned to the Broker for processing.
5. Once the trust is established, the trustee will sign the carrier application as owner and return the application and illustration to the Broker. The agent will submit this to a GA for carrier submission and approval.
6. Once a policy is approved and issued by the insurance carrier, the policy along with agent and insured signed Delivery Requirements will be sent to the Broker for processing.
7. Upon review and approval of all documents by the trustee and lender’s attorney, the lender will then fund the policy via wire transfer directly to the insurance carrier. This process could take up to one week once the policy and requirements are received by the trustee.

It is not uncommon for questions to arise regarding trust and loan documents during this process. As a Broker, we are there to be a resource and an advocate on behalf of the agent’s client with the lender if the need arises. We urge all of the agents to have their clients represented by counsel and to have all documents provided reviewed in a timely manner. We also urge the agents make sure that they are licensed in the proper state for the carrier application. This recommendation is based on the fact that the owner trust is usually domiciled in a state different from the insured’s residence.

If you have further questions or comments on closing procedures or premium finance, please contact Finance For Life at 877-763-0098

Let The Ink Dry!

Premium Financing: Now More Than Ever-Research Is The Best Way To Educate Yourself On All Of The Options That Are Available

Clients, agents and insurers are all getting burned by wet ink deals. “Wet ink” policies, also known as contestables, 3% deals, flip deals or wet sales are transactions where an insured takes out a life policy and sells it on the secondary market, often within a week of issue, for a specified percentage of face, usually in the 3% range. They are called “wet ink” because the paper is sold while the ink is still drying on the contract. Typically the insureds can walk away with $300,000 on a $10,000,000 policy. Crafty agents and promoters sell these plans as free money, essentially telling the client they can get a large check with no downside, and uninformed seniors have bought them by the truckload, unaware of the risks.

Know the risks associated with these types of premium financing programs:

• May be a violation of state insurance law or regulation·
• May raise your risk of securities regulation and litigation issues·
• May put you at risk for unexpected tax fees

Ask your Agent to fully explain all of the potential consequences.

Finance For Life prides itself on being able to offer a variety of loans, including Hybrid premium financing. Our experienced team will find a reputable premium financing plan that fits your specific needs.If you have questions or inquiries on premium financing, please contact us direct:

Phone: 877-763-0098, visit our web site at www.financeforlife.com <http://www.financeforlife.com/> or email info@financeforlife.com

Life Insurance Premium Financing

The FFL Loan Advantage Program

You’ve heard about it from your friends and business associates, out on the golf course, and perhaps even from your life insurance agent, but you still aren’t quite sure what it is, or how it can benefit you. The FFL Loan Advantage Program™ was created to educate you about premium financing and assist you with the purchase of large face life insurance policies, for estate planning purposes, or simply to leave a legacy after your passing.

Premium financing is a tool that allows you to put in force a large life insurance policy on your life to benefit your heirs, estate, business or favorite charity. When utilizing a loan from a specialty lender or bank, the collateral required is very reasonable and usually takes the form of a personal guarantee for a small percentage of the loan used to fund your policy. In most cases, no letter of credit or other assets are required to be pledged as collateral. For most seniors, there are no out of pocket costs required initially, allowing you to get the coverage you need, while you are healthy, without the financial burden of writing a large check or pledging important assets.

Contact Finance For Life:

Phone: 877.763.0098
Information: info@financeforlife.com
Cases: cases@financeforlife.com