Leveraged Life Insurance Funding
Premium financing is a strategy where a third-party lender covers the premium payments on a large life insurance policy, allowing the policyholder to preserve liquidity instead of paying premiums out of pocket.
Instead of drawing down cash to fund a large policy, the premium is borrowed, keeping the policyholder's own capital free to keep working elsewhere.
Instead of paying for a large policy with your own cash, you borrow the premium and keep your capital working elsewhere.
How leverage works here, and who this actually fits.