Access immediate capital using life insurance while securing long-term wealth and estate protection
An Immediate Financing Arrangement is a high-level financial strategy that uses a permanent life insurance policy as collateral to secure immediate financing. You fund the policy, assign its value to a lender, and receive a loan or line of credit you can use for business, investments, or personal needs — while the policy continues to grow and protect your estate.
Step 1: Set up your permanent life insurance policy
I help you choose a policy structured for strong early cash value growth and long-term performance, suitable for collateral assignment.
Step 2: Work with the lender
While the policy is being underwritten, I coordinate with private lenders or banks who specialize in IFA strategies to structure your financing terms.
Step 3: Finalize the policy and loan
Once the policy is approved, we work with your accountant and legal team to complete the loan documents and collateral assignment.
Step 4: Access capital
After setup, you gain access to up to 80 to 100 percent of your policy's cash value through a secured line of credit or bank loan. These funds are available for reinvestment or personal use.
Step 5: Maintain growth and protection
Your policy continues to grow based on guaranteed interest and dividends, even as you use the loaned capital. The insurance coverage stays in place, protecting your estate.
Step 6: Repayment through the estate
At death, the loan is repaid using the life insurance death benefit. Any remaining funds are paid out tax free to your beneficiaries.
The IFA strategy is ideal for:
Incorporated business owners and professionals
High-income individuals with strong credit and cash flow
Those looking to optimize retained earnings or newly received dividends
Clients with a desire to preserve capital while still accessing liquidity
Access capital immediately without waiting years for policy buildup
Free up business or personal cash flow while still holding an insurance asset
No tax triggered when borrowing against policy value
Policy continues to grow and insurance coverage remains active
Leave a legacy by repaying the loan from the death benefit and passing the rest on tax free
If you fund a permanent life insurance policy with $200,000, you may qualify for a loan of up to $180,000 within the same year. You reinvest the loan in your business or real estate portfolio while your policy value keeps growing in the background. When you pass, the loan is repaid, and your estate receives the balance — all without disrupting your financial plans.
This strategy requires coordination between your advisor, lender, accountant, and legal team
Loan interest compounds over time and should be managed carefully
If the loan is not repaid, it reduces the amount your beneficiaries receive
Policy surrender before maturity may trigger tax or penalties
Changes in tax or banking regulations may affect how the strategy operates
I help you:
Structure the right permanent life insurance policy for IFA success
Coordinate the financing process from underwriting to disbursement
Connect with lenders who understand and support IFA strategies
Provide ongoing reviews and support to manage loan value, interest, and estate planning
Align this strategy with your business, tax, and legacy goals
[Book a Free Consultation Today]
Let’s talk about how the Immediate Financing Arrangement can unlock capital now and help you build long-term wealth with confidence.
