How Advisors Can Catch Premium Financing Red Flags
The biggest sign to look for is if someone has, or is looking at, a premium financed life insurance transaction in the first place.
An attorney recently asked me to offer some red flags to look for regarding premium financing. Here’s my reply.
I’ll start with a somewhat facetious comment. The biggest red flag I look for is if someone has, or is looking at, a premium financed life insurance transaction. In a sense, that’s a joke but it’s also true. The problem is, you can’t really do anything with it.
The older a transaction, the more in jeopardy it may be because the further back you go, the higher the crediting assumption that was likely used and the further it’s fallen. A transaction can’t be supported at 5% what might have been projected at 7% or 8%. For full post, click here…
