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The Insured Retirement Advantage®
DO YOU KNOW ABOUT THE NEW I.R.A.®?
Using leverage to significantly increase buying power and enhance the potential benefits of life insurance the Northstar Funding Partners (NSFP) Insured Retirement Advantage® (I.R.A.®) is a unique approach to obtain life insurance for business protection needs, supplemental income and traditional estate and retirement planning. It carefully applies leverage, innovative product solutions and a custom design to enhance a variety of planning strategies.
Designed with a focus on the small business owner and emerging affluent professional the NSFP I.R.A.® provides you the opportunity to introduce the concept of financed life insurance to a significantly wider range of prospects – clients that are not typically eligible for conventional financing arrangements.
The insured must have a minimum annual (tax return proven) income of $150,000 and be less than 60 years old. Interest payments on the loans begin immediately and the loan is amortizing starting in year 2.
The I.R.A.® program offers qualifying business borrowers access to a full-recourse commercial loan, the proceeds of which are used to fund both annual & single premium loan structures for a life insurance product offered by an approved carrier.* The acceptable face amounts for participating policies range from $1,000,000 to $4,000,000 (specific preset face amounts are preferred – see detailed program specifications below).
The Insured Retirement Advantage® is a Premium Financed Life Insurance Program. *Please check with Northstar as to life insurance company and product availability.
SPECIFICATION & FEATURES
Minimum face amount of $1,000,000 and maximum face amount of $4,000,000 (subject to carrier retention and reinsurance limits)Prefer to offer specific face amounts of $1m, $1.5m, $2m, $2.5m, $3m, $3.5m, $4m
Minimum annual funded premiumof $50,000 – based on a ten pay,Non-MEC premium solve
Maximum issue age of 60
Minimum Insured income requirement of $150,000 supported by the last two years of tax returns* (*may be higher base upon carrier requirements)
Loans can be made to Corporations, Trusts and other Entities
Minimum Business Revenue required of $750,000 2 consecutive years (some carrier exceptions may apply)
Business contributions & participation are required in the form of interest payments beginning immediately.
Annual Administrative Fees limited to 7 years.
Insured’s financial position must indicate a liquidity requirement of 125% of the cumulative premium payments in the first 5 years minus the contribution made by the borrower/guarantor in the first 5 years.
Interest rate spread of 1.85% over One Year LIBOR – for a ten year term.
Interest rate spread is locked for up to 20 years – based on certain requirements
NO waiting for tranches to be created and aggregating unrelated cases – which significantly decreases processing times and accelerates policy funding
No Arrangement / Origination Fee
One Time Financial Underwriting
No Annual Loan Re-qualification
Full Recourse Loan
Low case split commission of 15%
Participating businesses are given the opportunity to use their business to fully fund a life insurance policy with at least $1 million in face value today – all while leaving more business assets free to work for them now!
This means I.R.A.® participants can quickly make contingencies for:
• Estate Planning
• Key Person Policy Funding
• Buy/Sell Agreement Funding
• Executive Bonus arrangements and other life insurance based solutions
The I.R.A.® approach allows you to open up an entirely new world of planning options for your clients and prospects today.
FOR FINANCIAL SERVICES PROFESSIONAL REVIEW ONLY – NOT APPROVED FOR CONSUMER PRESENTATION SPECIFICATIONS AND OTHER FEATURES SUBJECT TO CHANGE AT ANYTIME
For Financial Services Professional Use. Application Limited to Individuals Who Are Properly Licensed and Approved by Applicable Regulatory Agencies and Departments.
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