Compelling Outstanding Advantages of the Higher Net Worth Strategy:

Maximized Tax-Free Lifetime Income.

 Supported by the largest Best Rated Insurance Companies and Banks in the country

THE BANK CAN ALSO LEVERAGE THE CASH VALUE OF THE POLICY INSTEAD OF FINANCING THE PREMIUM. DEPENDING ON CLIENTS CIRUCMSTAMNCES AND TOTAL NET WORTH THIS COULD BE A BETTER CHOICE IN THE HIGHER INTEREST INFLATIONARY ENVIRONMENT WE HAVE TODAY. LET CAYMAN CAPITAL SHOW YOU WHAT WE CAN DO FOR YOU WITH A FREE CONSULTATION.

​Premium financing for eligible clients can be applied as a maximized savings and leveraging strategy for income, where a Bank pays the premiums for life insurance. Part of the proceeds from the life insurance can pay the bank back. Premium financing as a tax strategy, accomplishes for the eligible client, a significant reduction of income tax exposure, and can save paying the IRS a substantial tax liability.

The bank is writing the check for the insurance premiums to the insurance carrier to provide for a bank guaranteed Leveraged Savings Plan. The client never sees the check. Corporate or personal guarantees are not required. Qualified clients then benefit from an enhanced tax-free future life-time income from the cash value, which typically can be increased by 200%-300%.

These Low-Interest collateralized loans from the bank are paid back by the increasing cash value of the insurance. The Life Insurance Policy is guaranteed to Never Lose Principal and Only Participates in the Upside Potential of the Market.

Eliminating the possibility of loss significantly increases the working rate of return of the policies’ cash value.

The mathematical design for the policy illustrations’ internal compounding strategy of the cash value, also directly contributes to a better rate return from the arbitrage.

This enhanced future income resulting from an arbitrage of the compounding of the “cash value” in the policy at a faster rate than the interest on the loan, and having more initial working money in the account from the loan.

This faster compounding rate in the policy is an important benefit of the arbitrage from the loan for financing the premiums of the policy, beside also having more initial working money in the account from the loan. This also eventually results in the client no longer having to post collateral after approximately six or seven years. In some cases the lender may request that additional collateral be posted to secure the loan.

When collateral is no longer needed, this is called the “crossover” and usually occurs after 7-12 years. However, this approximation of when the clients collateral is released depends on the individual case and the design for the clients primary objectives.

The policy continues then to provide a regular and continuous future maximized tax-free income which can be distributed either annually or according a plan approved by the client.

The death benefit can pay back the loan, and is an increasing amount to cover the interest portion of the loan, and is always more than the loan. Net of the loan we also typically see a significant legacy for the beneficiary.

The bank can stay in for the life of the client.

  • If the Client Choses to Pay a Portion of the Interest on the Bank Loan this will Significantly Increase Income and the Legacy. Depending on certain factors and individual circumstances, the INTEREST for PREMIUM FINANCING can a deductible business expense.  ( IRC 264 (e) (1) “et al.”)
  • Premium Financed Collateralized Strategies for Business, and Individuals, are an Exceptional Alternative for Choosing to Put Less Money into a Qualified Plan such as 401(K), Cash Balance, etc., and use that TAX-DEFERRED Money, for our LEVERAGED RETIREMENT SAVINGS PLAN with a TAX-FREE ENHANCED INCOME. See The Above Caption “TAX-FREE INCOME PLANNING TWO” for Sample Comparison of the 401(K) vs Premium Financed Retirement Saving Plan. (Consider 10 Important Incentives)
  • ​The Supplemental Leveraged Retirement Savings Plan is a non-qualified personal savings plan with a Maximized Tax-Free Income. The Leveraged Supplemental Tax-Free Income Plan maximizes to have MORE POTENTIAL EARNING POWER and BETTER TAX INCENTIVES for the client, than Deferred Money from QUALIFIED EMPLOYER RETIREMENT PLANS, including Employer Matching Contribution Plans and a Roth.

California Employers without a Qualified Retirement Savings Plan are now required to either enroll their workers in CalSavers or provide a retirement plan through the private market.

California Clients who may take advantage of the Collateralized Premium Financing Strategies are Business Owners who have Opted-Out of CalSavers or have less than 5 employees, and for Partnerships or other Business Entities with only Managing Partners.

  • The Collateralized Premium Financing Strategy is also an EXCELLENT OPTION for an INDIVIDUAL CLIENT apart from CalSavers or their current Qualified Plans, as a Supplemental Tax-Free Maximized Income, or a Supplemental Leveraged Savings Retirement Plan with a Tax-Free and Maximized Income.
  • OUT OF STATE BUSINESS OWNER CLIENTS typically use our Collateralized Premium  Financing Strategy for a Tax-Free Retirement Savings Plan” with Income up to an unlimited amount of Eligible Employees, or as an Individual Client, for either a Supplemental Tax-Free Maximized Income, or a Supplemental Leveraged Savings Retirement Plan with a Tax-Free and Maximized Income.​
  • The Premium Financed Supplemental Tax-Free and Maximized Retirement Income Plan is a more cost effective choice than bonuses, stock options or RSU’s, with major additional  very substantial financial advantages for the employer and employee, and is an Exceptional Key Employee Recruitment and Retention Incentive.

SEVERAL PREMIUM FINANCING CHOICES INCLUDE:

Supplemental Leveraged Retirement Savings Plans designed for tax-free future Income.  Income Replacement Plans, Key Employee, Buy-Sell Agreements. Estate Preservation. Tax and Estate Planning. Farm and Business Succession Planning. Philanthropy Designs. Compensation Plans.

The Supplemental Income Leveraged Retirement Savings Plan unlike Qualified Plans, will not run out of money during your retirement and can give you a regular “paycheck” for the rest of your life. These are the number one concerns for most people approaching retirement. This is a personal non-qualified plan that is maximized to give you dependable tax-free future income.
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​No one strategy can be used for everyone and produce the same result. The presented collateralized strategy was meant to introduce the benefits of just one type of a current preferred choice for a collateralized premium finance design. All premium finance companies we work with are very established companies with billions of dollars in business.

Due to the unlimited variations in proprietary designs instead of the presented collateralized strategy, Cayman Capital may advise an alternate customized premium finance collateralized design with similar or different advantages, which could be more suitable for the client and may better potentially maximize individual tax-free benefits for the client.

Depending on the clients unique circumstance, objectives and tax benefits, Cayman Capital may also advise a different competitive premium finance company firm, rather than the firm described in the following paragraph, as the “No-Out-Of-Pocket Income Leveraged Tax-Free Strategy” for clients who may better qualify for an similar but alternative strategy.

  • The presented “No-Out-Of-Pocket Income Leveraged Tax-Free Strategy” is a proprietary design from one of our principal financial companies specializing in premium finance that for the past 20 years helped over 1600 companies, many of which are Publicly Traded Companies, Fortune 500 Companies, Foundations, Charities, Major Universities, has orchestrated 9 Billion in Loans, has on their books 18 Billionaire clients and a number of prominent sports personalities.
  • This No-Out-Of-Pocket Proprietary Income Leveraged Strategy Design depending on the individual case, typically may result in a future income that is at least 200% x 300% more and transfers a legacy. Paying some of the interest at the clients discretion will further boost income and the legacy. Leveraged accelerated excess growth which cannot be lost, is a unique feature of this premium finance design.

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  • Money is leveraged without the following risks. Downside protection with a floor of 0% guarantees protection from any loss of principal and that the policy cannot lose money from market loses. Policy only participates in the upside potential of the market. Eliminating the possibility of loss will also significantly increase rate of return. This program is a strategy that also saves the client after-tax dollars and allows the eligible client to receive a tax-free lifetime maximized income. This insurance policy can never default. The bank will stay in for the life of the client.
  • This reassures dignity, financial security and peace of mind where the client can have a chance to live better tomorrow than they do today.
  • This strategy does not disrupt cash flows or current investment assets, and provides more liquidity for other investments. The funds needed are obtained by borrowing from one of our Banks. The client pledges collateral which is usually 10-15% of the insurance premium.
  • Cayman Capital has proprietary arrangements with selected insurance carriers for this program. We have exclusive relationships with a number of major banks such as Goldman Sachs, JP Morgan, BNY Mellon, US Bank, who are the Administrators for the program.
  • The bank will accept cash and cash equivalents for collateral, or a letter of credit for real estate or land. Again, the client does not have to write a check. The owner of a large amount of land for instance could use a small portion of that land for collateral. The letter of credit solves a liquidity issue for the client.
  • A distinctive proprietary design from one of the principal companies we work with guarantees that for the first seven years the cash value of the insurance policy equals the surrender value of the insurance policy. The policy has immediate cash surrender value. This reduces the collateral.
  • The Bank can be paid back by the insurance with a portion of the death benefit so the client does not need a plan for an exit scenario. This strategy provides for a maximized leveraged income, and a legacy where the clients beneficiary is also paid a significant sum tax-free net of loan. Legacy can also be used to pay estate taxes.
  • Leveraging is not a new idea. Millionaires and eligible individuals have for a very long time, been exploiting maximized income strategies with leveraged bank backed savings accounts protected by insurance, to make more money while retaining their own capital. Leveraging other peoples money in this way to finance a business, real estate or an asset such as a bank guaranteed savings plan with insurance is not a new idea.
  • Premium Finance with our Banks is not the traditional type of Premium Financing. The client may choose 100% financing for maximum income performance as part of the loan that will be paid off to the bank when the client expires. The death benefit is always exceeding the loan and is an increasing amount to cover the interest portion of the loan.
  • The Supplemental Income Retirement Plan when compared to tax-deferred qualified plans, such as the approximate 33% tax liability of a traditional 401 K or IRA, this premium financing program provides for lifetime maximized tax-free income.
  • Compared to qualified plans with the premium financed Supplemental Retirement Income Plan, the money can be accessed before age 59 1/2 with no penalties. No I R S Contribution and Benefit Limits like 401 K, IRA, Cash Balance or Defined Benefit plans. No Excess Earnings Limitations. No Payroll Salary Deductions or I R S Qualified Plan Reporting and Disclosure Requirements. Nothing out of Pocket.
  • The Premium Financing alternative can complement a qualified plan, or selectively eliminate an individual qualified retirement program that is costly for the client.
  • When the Premium Financing alternative is substituted for a qualified retirement plan the client saves the administrative costs of that plan and saves the expense of a significant amount of money for employee retirement benefits. The employer additionally will have no liability for benefits. The employer will also save FICA expenses.

Premium Financing with low-interest loans can be used as a strategy when tax-free maximized lifetime income is appropriate for the eligible client. Premium Financing can be a compelling alternative that has many unique benefits and is especially appropriate for Estate Planning, Retirement Income, Key Employee Retention & Recruitment, Buy-Sell Design, and for Donors and Charities.