A commercial lender offers asset-backed loans from $100,000 to $10 million to fund large insurance contracts without tapping your cash flow. The policy's tax-exempt earnings cover the loan interest, so you pay only interest-only payments while funding the contract at less than 20% of the annual premium.
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You have a need to fund an insurance contract. It might be an estate insurance contract, a business insurance contract, or a retirement insurance contract. But the annual cost of funding this contract would divert cash flow from capital assets that are still appreciating or generating income for you. Well, now you can finance the funding of this contract without diverting cash flow from capital assets because you can leverage your capital assets and borrow the money to fund this contract at low interest rates that are offset by the tax-exempt interest earnings or annual dividends within the insurance contract. This effectively enables you to fully fund your insurance contract at less than 20% of the required annual payment by simply making interest-only payments on the loan. Here's how it works. Depending on the market value of your capital assets, a commercial lending institution, one that specializes in this type of financing, will loan you or your trust or your corporation, between $100,000 and $10 million. This money is deposited directly into your insurance contract, which also serves—