Step 1: Insured works with TPA Services to select universal life insurance coverage from our selection of A-rated providers. The policy will be housed in either an existent or newly formed life insurance trust. Any applicable cash value benefits earned by the insured through their prior policies can be transferred tax-free and received as additional cash value in their new program.

Step 2: TPA Services negotiates preferred, relationship lending terms for your life insurance coverage on your behalf. We select from an assortment of premier banking institutions, all of which have in-house departments of analysts prepared to assist TPA Services in the servicing and maintenance of your premium finance program.

Step 3: The bank pays the annual insurance premiums on the insured’s behalf to the life insurance company.

Step 4: The life insurance trust pays interest(if applicable) to the bank.

Step 5: The premium finance life insurance program allows excess cash value interest to accrue over time within the universal life insurance policy through its equity indexed crediting, which will build a spread to be used to offset the interest paid on the life insurance loan.

Step 6: TPA Services closely monitors the progress of the insured’s premium finance life insurance program. Following the surrender period, sufficient cash value will accrue and allow the trust to fully pay its life insurance loan obligation while leaving enough excess cash value to maintain or even increase your death benefit with no outstanding liability remaining!

Step 7a: The life insurance loan to the bank is repaid either through the premium finance life insurance cash value or its corresponding death benefit.

Step 7b: Bank receives loan principal repayment plus interest if applicable.

Step 8: Upon the insured’s death, the trust receives the remaining death benefit proceeds entirely free from both estate and income taxes.

Step 9: The trust distributes proceeds to the insured’s heirs completely tax-free

Premium Financing

Insured Bank

Life Insurance Trust

Step 5

Step 2

Step 3

Life Insurance Company

Step 4

Step 8

Step 7a

Step 7b Heirs

Step 9

Step 1

Step 6