Cambridge Financing Plan

Premium Financing Done Right:

There's a right way and a wrong way to finance a life insurance policy. Then, there's the best way - the Cambridge Plan.

Premium Financing Done Right:

• Is sold to high net-worth consumers who need death benefit as a solution for federal estate taxes and wealth transference planning.
• Is fully transparent with everything disclosed to the life insurance company, who are our partners... not obstacles to circumvent in the financing process.
• There is NO up front payments of any kind. There are NO investors or strangers involved in the program.
• We are approved with the most carriers for premium financing.
• The lender, Cambridge Financing Company, has NO ownership of any kind in the policy if the loan is paid off and will never participate in any manner on the settlement of the policy.
• The intent of the insured is to finance life insurance for death benefit needs, not to sell the policy to generate a profit.
• Legal opinions are issued by nationally recognized law firms for every loan made by lender on insurable interest and the loan structure.

Premium financing allows high net worth individuals to use a combination of the life insurance policy and other assets as collateral for a loan to fund life insurance policies.

The Cambridge Premium Finance Program
Cambridge Financing Company (CFC) and its strategic partners have created better premium finance programs to meet the needs of consumers. Accepted by the insurance industry, their foundation is based on a legitimate need for life insurance and offer tremendous flexibility for the Policy Owner.

The Cambridge program requires secondary collateral equal to the total loan value. This is a vehicle for clients, with legitimate, pre-determined life insurance needs, who do not want to liquidate or leverage assets to fund life insurance policies. This program provides clients the opportunity to:

• Obtain significant amounts of insurance with a minimal initial out-of- pocket cost.
• Ability to use a personal guarantee as collateral.
• Utilize interest rates and loan terms that are extremely competitive.

Client Profile
The requirements for financing are:

• Insured has a legitimate need for life insurance to solve estate planning issues, wealth transference objectives, wealth replacement and financial planning objectives or to protect against other financial losses. The Cambridge financing plan has been created to help wealthy consumers acquire as much life insurance as they need to solve these objectives, using the most favorable financing methods available. We recognize that some consumers are seeking out “free” life insurance by using their policy and/or insurability in a variety of unique ways. These are generally investor driven plans that minimally benefit the Insured’s beneficiaries. This is not our market and our financing plans are not designed to satisfy these consumers.
• Insured is over 70.
• Insured has a net worth sufficient to justify a minimum of $1,000,000 Death Benefit.
• Insured is a U.S. citizen.
• Insured has no pre-existing felony convictions.
• No investor initiated policies will be accepted; insurable interest tests must be met.
  

The Process
The following steps outline our program:

1. To consider a policy for financing, we require the following information:
   a. the client’s income tax returns for the previous two years;
   b. other supporting financial documents pertinent to the client’s loan justification;
   c. a completed Financial Statement (form provided by Cambridge);
   d. a signed CFC HIPPA Authorization;
   e. life expectancy reports;
   f. carrier illustrations; and
   g. a firm offer from an accepted insurance carrier.
   
2. We will evaluate the proposed submission.
3. If the case qualifies for financing, Cambridge will issue a Term Sheet that outlines the terms of the loan and loan amount along with the client Trust and loan documents for signature.
4. Upon client approval, the Trust and loan documents are signed by all parties.
5. Policy is issued and premiums are paid by the Lender for the full term of the loan. The policy is collaterally assigned to the Lender.

Options At Loan Maturity
At the maturity of the loan, the borrower has the choice of:

• Extend the term of the loan.
• Refinance with another finance company.
• Retain the policy by paying the loan balance on or before loan maturity and paying future premiums.
• Investigate settlement options.
• Default.

 

Like any life insurance policy that is financed, the policy owner is under no obligation to pursue any particular course of action at the end of the loan although our typical client is acquiring the policy to facilitate estate planning objectives and/or wealth transference objectives. There is no requirement that the client must sell the policy. Our program is designed to keep the policy owned and controlled by the original owner. Cambridge is not involved in the life insurance policy settlement business and our premium finance program does not require the policy to be settled.

Contact a Life Insurance Concepts Representative Today.

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