A premium finance rescue uses a life settlement to exit a premium financing arrangement by selling the policy to pay off the premium finance loan and potentially returning cash to the policyholder.
Premium Finance Rescue
Premium financing seemed like a good idea at the time. Borrow to fund a large policy, use the death benefit or cash value to repay the loan.
But when interest rates change, policy performance drops, or exit assumptions don't hold — you're stuck with a policy you can't afford and a loan you can't escape.
Explore Your Exit Options
We take the financed policy to market. If the settlement value exceeds the loan balance, you walk away with cash. If not, you at least exit the arrangement without further loss.
Either way, you stop the bleeding. No more premium payments. No more compounding interest on the loan. No more exposure to a structure that's working against you.
For many clients, the settlement proceeds are enough to fully repay the loan and generate a meaningful return. For others, the value is in exiting cleanly and moving on.
We review the policy, the loan balance, and the financing terms to establish realistic settlement expectations.
The policy goes to qualified institutional buyers who compete for it — maximizing the settlement offer.
Proceeds repay the loan. Any surplus goes to you. The financing arrangement is closed.
Premium financing arrangements are most common among a specific profile of policyholders and advisors.
Ultra-large policies financed to avoid liquidity events at inception.
Key-person or business continuation policies funded through corporate lending arrangements.
ILITs and other trust structures that hold financed policies on behalf of beneficiaries.
Advisors managing financed arrangements for clients whose situations have evolved.
Every situation is different. A confidential review will tell you what the policy is worth, what exit options exist, and what a realistic outcome looks like for your specific arrangement.
Key Takeaway
If you're trapped in a premium financing arrangement with rising costs, a life settlement may be your exit strategy — pay off the loan and walk away with cash.
It's a life settlement used as an exit strategy from a premium financing arrangement. The policy is sold, the premium finance loan is paid off from the proceeds, and any remaining cash goes to the policyholder.
In many cases, yes. The settlement amount must exceed the outstanding loan balance. A broker can evaluate whether your policy's market value is sufficient to retire the debt and return cash to you.