Benefits & Risks

Top Reasons for Premium Financing


High net worth clients often earn large returns on investments. By utilizing premium financing, clients can keep money working in high returning assets, allowing for additional investment opportunities.

Retained Capital

Premium financing allows clients to leverage current assets and their policy’s cash surrender value to obtain sufficient coverage.

Tax Savings

By properly structuring ownership of life insurance and paying interest instead of premiums, clients can obtain tax-free retirement income and significantly minimize gift and estate taxes.

What are the Risks?

Though premium financed life insurance and our various life insurance solutions offer a multitude of benefits, there are some risks involved.

Rate Fluctuations

It is important to be aware of the possibility of interest rates increasing more than anticipated. If this occurs, you will be responsible for coming up with additional money or collateral to cover the cost.

Longer Timetable

Premium financing can be a longer process, so be aware of this before starting the transaction.


One popular form of collateral, a letter of credit from the policy holder’s financial institution, can sometimes be challenging and costly to obtain.

Frequently Asked Questions

  • Net worth upward of $5 million
  • Client’s net worth is in investments or assets earning more than the estimated loan interest rate
  • Small impact on client’s cash flow
  • No disruption in investment portfolios
  • Diminishes the need to liquidate assets
  • Even if you already own life insurance, we would be happy to review your policy.
  • Often we can provide a creative solution resulting in:
    • Lower premium payments
    • Increased death benefit and overall performance of your life insurance portfolio
    • Improved cash flow

We get it. To trust just anyone with your legacy is scary. At Goheen Companies, we pride ourselves on astute attention to detail from the beginning of the process to the end. We consider your needs and craft a specially tailored solution designed just for you. At Goheen Companies, you aren’t just considered a client – you’re considered family.

Still have questions regarding premium financed life insurance and how it works? Not sure if it’s the right solution for you? Shawn would love to speak with you personally about the process and why we’re passionate about it. You can reach him directly at 713.530.8721.

Schedule a free consultation

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