Hey! Have you heard of the New I.R.A.®?
maximizing leverage at any income level
The insured retirement advantage®
how it works
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 Details
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.
Specifics & 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 premium of $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.
The 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%
Bespoke solution for a larger client base
Is the New I.R.A® right for you or your clients?
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!
Click below to contact the NSFP offices today!
New I.R.A.® participants can quickly make contingencies for:
- Estate Planning
- Key Person Policy Funding
- Buy / Sell Agreement Funding
- Executive Bonus Arrangements
- Non-qualified Deferred Compensation
The New I.R.A.® changes everything
Imagine an entirely new world of planning options for your clients and prospects today.
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