Situer le bureau

Votre bureau le plus proche

Votre agence la plus proche

Life insurance premium financing

Adding a borrowing strategy to your estate plans can protect your heirs in the future—and your financial position today. For the executors of your estate, paying death taxes may precipitate a liquidity crisis—forcing them to hastily sell assets that would otherwise be inherited by your beneficiaries, or resulting in other undesired outcomes.

What is Life Insurance Premium Financing?


A way to plan for estate taxes

Life insurance premium financing can help you maximize wealth to your heirs and keep your legacy intact. 

One way to protect future heirs is to insure your life so that, at your passing, estate taxes can be paid with the proceeds from a high-value life insurance policy. Typically, in such arrangements, the policy is held separate from the rest of the estate, in a trust.1

An insurance policy can directly benefit your heirs and other beneficiaries. The proceeds of the policy can be used to:

  • Cover estate taxes and thereby avoid liquidating assets or disrupting an investment portfolio
  • Retain control of significant or illiquid assets, such as a concentrated stock position or real estate assets.
  • Provide funds to sustain a business

Many of our clients consider financing their life insurance premiums in order to reduce the gift tax implications of contributing assets to a trust

Why borrow?

 

Not surprisingly, putting such protection in place comes at a significant cost, in the form of annual policy premiums. As a result, many clients elect to finance those costs with a loan collateralized by the cash surrender value of the policy, in addition to marketable securities.

This approach has the added benefit of being tax efficient: the funds that the trust borrows to pay the annual premiums and interest expenses generally are available free of gift taxes.

Financing the cost of a high-value insurance policy can benefit you and ultimately your estate in many ways, now and in the future, by allowing you to:

  • Maximize insurance coverage without adversely affecting your current cash flow (or lifestyle)
  • Avoid having to sell assets—and potentially triggering a taxable event—to cover the cost of the premiums
  • Allow investments within the policy to grow free of income taxes
  • Gain access to liquidity at an interest rate that is often less expensive than a “policy loan”

A “carry” opportunity may exist as well: If the interest rate charged on the loan is lower than the rate of return earned on the cash value of the policy, there may be potential appreciation.

 

Life Insurance Premium Financing risks to consider:


There are risks inherent in any borrowing strategy. These include interest rate fluctuation, market volatility and the possibility of collateral shortfall, which may lead to a margin call. Before deciding whether to finance the acquisition of high-value life insurance by borrowing, we encourage you to discuss your objectives with your J.P. Morgan team as well as with your legal and tax advisors.

 

Specialty Lending

1Trust should be trusteed with an independent, non-subordinated party to avoid exposure to insurance contract indirect “incidences of ownership” rules set forth under IRS Sec. 2042.

Découvrez comment devenir client(e) de la Banque Privée de J.P. Morgan.

Veuillez nous donner quelques informations vous concernant et notre équipe vous contactera.

*Champs obligatoires

Découvrez comment devenir client(e) de la Banque Privée de J.P. Morgan.

Veuillez nous donner quelques informations vous concernant et notre équipe vous contactera.

Saisissez votre prénom

> ou < ne sont pas autorisés

Only 40 characters allowed

Saisissez votre nom

> ou < ne sont pas autorisés

Only 40 characters allowed

Sélectionnez votre pays de résidence

Saisissez une adresse valide

> ou < ne sont pas autorisés

Only 150 characters allowed

Saisissez votre ville

> ou < ne sont pas autorisés

Only 35 characters allowed

Sélectionnez votre Etat

> or < are not allowed

Saisissez votre code postal

Veuillez indiquer un code postal ZIP valide.

> or < are not allowed

Only 10 characters allowed

Saisissez votre code postal

Veuillez indiquer un code postal ZIP valide.

> or < are not allowed

Only 10 characters allowed

Saisissez votre code pays

Saisissez votre code pays

> or < are not allowed

Saisissez votre numéro de téléphone

Le numéro de téléphone doit être composé de 10 chiffres

Veuillez indiquer un numéro de téléphone valide

> or < are not allowed

Only 15 characters allowed

Saisissez votre numéro de téléphone

Veuillez indiquer un numéro de téléphone valide

> or < are not allowed

Only 15 characters allowed

Présentez-vous

0/1000

Only 1000 characters allowed

> or < are not allowed

La case n'est pas cochée

Informations importantes

Key risks

This material is for information purposes only, and may inform you of certain products and services offered by private banking businesses, part of JPMorgan Chase & Co. (“JPM”). Products and services described, as well as associated fees, charges and interest rates, are subject to change in accordance with the applicable account agreements and may differ among geographic locations. Not all products and services are offered at all locations. If you are a person with a disability and need additional support accessing this material, please contact your J.P. Morgan team or email us at accessibility.support@jpmorgan.com for assistance. Please read all Important Information.

GENERAL RISKS & CONSIDERATIONS

Any views, strategies or products discussed in this material may not be appropriate for all individuals and are subject to risks. Investors may get back less than they invested, and past performance is not a reliable indicator of future results. Asset allocation/diversification does not guarantee a profit or protect against loss. Nothing in this material should be relied upon in isolation for the purpose of making an investment decision. You are urged to consider carefully whether the services, products, asset classes (e.g. equities, fixed income, alternative investments, commodities, etc.) or strategies discussed are suitable to your needs. You must also consider the objectives, risks, charges, and expenses associated with an investment service, product or strategy prior to making an investment decision. For this and more complete information, including discussion of your goals/situation, contact your J.P. Morgan team.

NON-RELIANCE

Certain information contained in this material is believed to be reliable; however, JPM does not represent or warrant its accuracy, reliability or completeness, or accept any liability for any loss or damage (whether direct or indirect) arising out of the use of all or any part of this material. No representation or warranty should be made with regard to any computations, graphs, tables, diagrams or commentary in this material, which are provided for illustration/ reference purposes only. The views, opinions, estimates and strategies expressed in this material constitute our judgment based on current market conditions and are subject to change without notice. JPM assumes no duty to update any information in this material in the event that such information changes. Views, opinions, estimates and strategies expressed herein may differ from those expressed by other areas of JPM, views expressed for other purposes or in other contexts, and this material should not be regarded as a research report. Any projected results and risks are based solely on hypothetical examples cited, and actual results and risks will vary depending on specific circumstances. Forward-looking statements should not be considered as guarantees or predictions of future events.

Nothing in this document shall be construed as giving rise to any duty of care owed to, or advisory relationship with, you or any third party. Nothing in this document shall be regarded as an offer, solicitation, recommendation or advice (whether financial, accounting, legal, tax or other) given by J.P. Morgan and/or its officers or employees, irrespective of whether or not such communication was given at your request. J.P. Morgan and its affiliates and employees do not provide tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any financial transactions.

EN SAVOIR PLUS sur notre société et nos professionnels de l’investissement grâce à FINRA Brokercheck

Pour en savoir plus sur les activités d’investissement de JP Morgan, y compris nos comptes, produits et services, ainsi que notre relation avec vous, veuillez consulter notre formulaire CRS et notre guide des services d’investissement et des produits de courtage de JP Morgan Securities LLC. 
 

JPMorgan Chase Bank, N.A. et ses filiales (collectivement « JPMCB ») proposent des services d’investissement, qui peuvent inclure les comptes et le dépôt gérés par la banque, dans le cadre de ses services de trust et fiduciaires. D’autres produits et services d’investissement, tels que les comptes de courtage et de conseil, sont proposés par l’intermédiaire de J.P. Morgan Securities LLC (« JPMS »), un membre de FINRA et SIPC. Les produits d’assurance sont mis à disposition à travers Chase Insurance Agency, Inc. (CIA), une agence d'assurance agréée, menant ses activités en tant que Chase Insurance Agency Services, Inc. en Floride. JPMCB, JPMS et CIA sont des sociétés affiliées sous le contrôle commun de JPMorgan Chase & Co. Les produits ne sont pas disponibles dans tous les états. Veuillez lire l’avis de non-responsabilité légale en conjonction avec ces pages.

LES PRODUITS D’INVESTISSEMENT ET D’ASSURANCE SONT : • NON ASSURÉ PAR LA FDIC • NON ASSURÉ PAR UN ORGANISME DU GOUVERNEMENT FÉDÉRAL • NON CONSTITUTIF D’UN DÉPÔT OU D’UNE AUTRE OBLIGATION DE JPMORGAN CHASE BANK, N.A. OU DE L’UNE DE SES SOCIÉTÉS AFFILIÉES, NI GARANTI PAR CELLES-CI • SOUMIS À DES RISQUES D’INVESTISSEMENT, Y COMPRIS LA PERTE ÉVENTUELLE DU MONTANT PRINCIPAL INVESTI

Les produits de dépôt bancaire, tels que les chèques, l’épargne et les prêts bancaires et les services connexes sont proposés par JPMorgan Chase Bank, N.A. Membre de la FDIC. Ne constitue pas un engagement à accorder un prêt. Tout octroi de crédit est sujet à une approbation de la part du prêteur.