Premium Finance

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Services

Upcoming Seminars

September 25th, 2025

6:00 PM – 8:00 PM

September 27th, 2025

10:00 AM – 12:00 PM

Contact Us

Name

contact info

Phone

1-561-532-4777

Email

info@psgfinancialgroup.com

Headquarters

2101 Vista Pkwy

Suite 118

West Palm Beach, FL 33411

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How Can We Help?

Discover the PSG Process to help your family or business eliminate future worry.

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Premium Finance

Premium financing represents one of the most sophisticated wealth preservation strategies available to high-net-worth individuals and business owners. Premium financed life insurance is typically a strategy reserved for high net worth individuals ($5,000,000+), family trusts, or successful business entities. This approach allows clients to secure substantial life insurance coverage while preserving liquid assets for business operations and investment opportunities.

By leveraging borrowed funds to cover life insurance premiums, clients can secure essential insurance benefits without depleting their capital assets, thus maintaining liquidity and preserving their investment portfolios. PSG Financial Group LLC structures premium finance arrangements that balance leverage benefits with risk management, ensuring that these strategies enhance rather than complicate your overall wealth plan. Our approach considers market conditions, interest rate environments, and policy performance to optimize outcomes for sophisticated clients.

Leverage Structuring

Strategic structuring balances leverage benefits with acceptable risk levels.

Credit Monitoring

Strategic monitoring addresses interest rate and policy performance risks.

Portfolio Oversight

Portfolio management adapts strategies to changing market and personal conditions.

Termination Planning

Planning protects against adverse developments and changing needs.

Key services for premium finance maximize life insurance benefits while preserving capital for investment opportunities.

  • Premium finance strategy design.
  • Lender relationship management.
  • Risk monitoring and mitigation.
  • Policy performance optimization.
  • Collateral management strategies.
  • Exit planning and implementation.
Life insurance premium financing is very attractive right now with low-interest rates available to high net worth clients but rising rates increase borrowing costs and strategy risk. Most premium finance arrangements include interest rate protection mechanisms and exit strategies to manage this risk. Regular stress testing helps identify when additional collateral or strategy modifications might be necessary to maintain viability.
Instead, a lender provides a loan to cover the policy premiums, and the policy itself is used as collateral. However, most lenders require additional collateral equal to 20-40% of the loan amount, depending on policy type and borrower creditworthiness. Collateral requirements may increase if policy performance deteriorates or interest rates rise significantly, requiring careful liquidity planning before implementing these strategies.
This strategy can work if the interest on the loans is less than the appreciation your clients anticipate earning on their assets but becomes problematic when borrowing costs exceed policy growth. Regular monitoring helps identify when policy performance, interest rates, or personal circumstances warrant strategy modification. Exit triggers should be established upfront, including specific performance thresholds and alternative strategies if premium financing becomes uneconomical.