Most wealthy people wish to preserve and protect their assets from federal estate taxes when those assets are transferred to their heirs. Perhaps you’re in this situation, and are looking for the best solution?

High net worth people use large amounts of life insurance to create the lowest possible cost of liquidity for the purpose of minimizing the impact of estate taxes. Without life insurance, federal estate taxes are paid 100% from estate assets.

Jumbo life insurance coverage, (often financed in a creative way), is a critical element in state-of-the-art succession planning and will help you transfer wealth with ease and much greater certainty.

High net worth people pay close to 50% in estate tax, on top of paying many other taxes while accumulating their wealth. 

Minimizing the burden of taxation on transferred wealth is sensible planning.

For these reasons, properly structured permanent life insurance is a necessary part of sophisticated estate planning strategies. To support and enhance these planning techniques, life insurance guarantees that liquidity is available upon death. This means less pain for your heirs.

Highly regarded income and estate planning attorneys are leading advocates of life insurance for estate planning purposes because it creates the immediate liquidity that binds their wealth transfer plans. 

Use your existing assets to secure jumbo life insurance coverage.

The cost of life insurance is low when structured properly. It is very important to understand how the jumbo life insurance definition affects pricing. 

The cost of life insurance is a fraction of the return generated from the death benefit. 

As people become more wealthy, it becomes increasingly more difficult, without insurance, to successfully protect the majority of their assets from estate and gift taxation.

Once the decision to purchase life insurance coverage is made, the question of how to best pay for the insurance can be considered. These issues are dependent upon many factors and it is why customization is always best. Should the premiums be accelerated? Should the coverage be whole life or indexed universal life?

Does premium financing make sense?

Borrow the Premiums to Pay For the Life Insurance Policy.

Premium Financing:

  • Borrowing the premiums from a bank can be an optimal way to fund permanent life insurance while offering great flexibility in the future.
  • Uses well managed loans to drive down out of pocket costs.
  • Non recourse design requires minimal collateral other than the life insurance policy.
  • Results in fully funded policies with many options to pay off the loan (always dependent on projections).
  • Minimizes out of pocket costs in all years until the anticipated exit strategies pays off the loan.

Work With Me To Help You Structure The Right Plan.

For 30+ years, I have been working with individuals, families and businesses facing these very same issues. Typically, my clients work with a team of cutting edge professionals. Whether they are estate planning attorneys, CPAs and wealth managers, my clients are people who appreciate expertise from professionals who bring valuable experience from their respective fields. I have helped my clients acquire more than $1B of permanent life insurance coverage and I have placed individual policies in excess of $50,000,000. I work with my clients to create value in many ways.

Driving down the commissions in jumbo life insurance policies can have a direct correlation to better policy performance in the early years.

I will help you get the best underwriting offers possible. It is critical to help the underwriters properly evaluate an applicant’s medical history in order to qualify for the best rate class.


“After spending several years working with top tier estate and tax advisors to put a succession plan in place, our counsel put us in touch with Ted Bernstein for the purpose of getting life insurance. I can’t say it any simpler than by saying, after working with Ted, I became aware that there is a real difference between insurance people. Ted is approachable and good at making insurance relatable.” Jake Garlick, Virginia

Please contact Ted Bernstein at 561-771-4647 or email him at [email protected]. He offers a complimentary consultation to discuss anything you wish about premium financing, succession planning and wealth preservation. If you have questions about Private Placement Life Insurance (PPLI), Ted can help make sense of this very complicated vehicle.

Also published on Medium.


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