When my sister and her husband,  both very successful business people, realized just how much they were worth combined, they thought that it was high time take that upped their life insurance to make sure that their children  were taken care of and that all of their many assets were protected.

At first they were going to pay for the insurance premiums out of pocket. And trust me, they weren’t looking at paying only a couple of hundred dollars a month either!  Their premiums were substantial, as was their coverage.  Sure, they were worth a lot, but not much of that was in actual cash.  They had a lot of their net worth tied up in stocks and over sea ventures.

That’s why I suggested they look into premium financing for life insurance.  It made much more sense that they finance their life insurance rather than pay directly out of pocket.  With life insurance financing, their interest rate would be low and they wouldn’t have any monthly payments, being about to use their life insurance to pay the debt off once they passed away. .  This way they could afford the insurance coverage they needed and still have enough money to cover other expenses.  While it shouldn’t be consider as “free” insurance, it is a cost efficient way for them to get the life insurance they need.

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