Minimum Net Worth:

Penn Mutual: $15MM

Pacific Life: $10MM

Nationwide: $10MM

Transamerica: $5MM

Securian: $5MM

National Life Group (LSW): $2.5MM (up to age 49), $5MM (ages 50+)

Lincoln: $2.5MM (ages 30-50), $5MM (ages 51+)

Allianz: $1MM, or $500K NW (with $200K income), or $0 NW (with $400K income)

Minimum Policy Size:

$100K borrowed annual premium (or $1MM total loan amount)

Our proprietary software creates a proxy for the premium financed IUL. We call it a "Leveraged Hypothetical Synthetic Asset." It is essentially a fictitious asset that behaves similar to an IUL in the sense that:

-Its growth is correlated with the S&P 500

-Its returns are restricted by a floor and a cap

-Charges are removed before the EOY index credit

We then analyze 121 different historical 40-year windows of S&P 500 performance and run the proxy's model through the 40-year period that produced the BEST Compounded Annual Growth Rate (CAGR) and the 40-year period that produced the WORST CAGR. The intent of this backtested analysis is to give the client a better understanding of a range of potential outcomes using an instrument that behaves similar to an IUL.

We work with 19 different lenders using multiple lending platforms. Different lenders will use a different index as the base rate (e.g., SOFR, CMT, Treasury rate, etc.), then add a spread on top of the base rate (typically between 1.00%-2.95%).  Other lenders use the Prime rate as the base rate, minus a spread (typically between 0.00%-1.50). 

We also have some lenders that offer multi-year fixed rates. 

There are typically price breaks at $500K in Annual Premium Borrowed (APB), as well at $1MM in APB. If we design a case wherein the requested death benefit solves for an annual premium close to a price break, often times it will make sense to increase the annual premium so that your client receives a more favorable borrowing rate (due to hitting the price break), and paying off the loan earlier using the policy values. Often times, this adjustment can result in a lower total out-of-pocket interest expense for the client, yield a higher initial face amount, and produce a higher low point net death benefit.

Based on the multiple lenders Lionsmark Capital works with, borrowing rates depend on a number of variables including:

1. Client Net Worth

2. Client Liquidity

3. Whether or not the client is willing to move collateral (or just post it from their current institution)

4. Type of Collateral (e.g., Cash, Marketable Securities, Letter Of Credit, Real Estate, etc.)

5. Amount of Premium Borrowed

6. Paying Interest vs. Paying Partial Premium and Accruing Interest on Additional Borrowed Premium

7. State of Client’s Primary Residence

8. Ownership of Policy (e.g., Trust, Shell LLC, Operating Business, Individual Person, etc.)

9. Length of Loan Term (e.g., 1-Year, 5-Years, 10-Years, 20-Years, etc.)

While other premium financing intermediaries just offer generic loan terms from one lender, Lionsmark Capital evaluates the client’s unique situation and preferences, and finds the lender with:1. The lowest rate2. Most fitting loan terms, specific to the client’s preferencesEach case is different, and we will design the most mathematically prudent premium financing design for your client on a case-by-case basis.

We have a variety of lenders on our platform that accept different forms of collateral. 

Most lenders will accept:

-Cash (typically credited an advanced rate of 100%)

-CDs (typically credited an advanced rate of 100%)

-Bonds (typically credited an advanced rate of 90%)

-Marketable Securities (typically credited an advanced rate of 50%-75%, depending on the portfolio)

-Cash Value of existing life insurance policies (typically credited an advanced rate of 95%)

-Real Estate Equity 

Lenders will NOT accept:

-Business valuation

-401(k) or IRA

-Cryptocurrency

-Assets held overseas