Why the super wealthy may want to fund life insurance with a loan
If the rate of return on the policy exceeds the loan's interest rate over the life of the contract, the client comes out ahead. But beware the risks.
Wealthy clients looking to use life insurance in their estate plans may find that funding their policies with a loan makes sense, especially as interest rates are still relatively low.
The goal is to exploit low interest rates to get a cheap loan, which funds premium payments for a cash-value life
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