Case Studies

Case Studies are for Illustration Purposes Only

Scenario 1:
A female, age 80, has a need for $15 million in life insurance for estate liquidity purposes. With most assets tied up in illiquid family business assets, she decides to finance the life insurance premiums using a Ridge Capital Flexible, 10-year Premium Finance Loan. On the fourth anniversary of the policy, the insured, uncertain over the future of estate taxation and her health, decides to continue financing the policy. The insured posts a qualifying letter of credit, additional premiums are funded to pay the next year's premiums and the loan is extended at a reduced interest rate.

Scenario 2:
A male, age 74, has a need for $20 million in life insurance for wealth transfer purposes. He has sufficient financial assets to fund the premiums but does not wish to allocate those resources at the time of purchase so he decides to fund the premiums using a Ridge Capital Flexible, 10-year Premium Finance Loan. The client experiences a decline in health and becomes uninsurable. He decides to continue financing the existing insurance policy through the 10-year duration of the loan.  At the end of year 10, he pays off the loan and continues to pay premiums on his own.