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Life insurance premium financing for multi-participant arrangements

Life insurance premium financing for multi-participant arrangements


February 07, 2020

Life insurance premium financing for multi-participant arrangements

Life insurance premium financing for multi-participant arrangements


February 07, 2020

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In today’s tight labor market, finding and retaining key employees is a top concern for many companies. A good benefits package can help with recruiting and encourage your critical executives to stay on board. Offering a 401(k) plan, robust health insurance, employee stock ownership plans, and life insurance options is crucial to creating a competitive benefits package.

To be able to offer appealing life insurance policies to a group of top executives, the employer can fund the policies as part of the benefits package. However, structuring these multi-participant arrangements can be complex on a large scale, especially when the policies are underwritten by multiple life insurance carriers.

In addition, the premiums for this kind of arrangement can be expensive. When the employer is covering the premiums, funds that could instead be invested back into the business are tied up in policy payments. To free up capital for growth initiatives, eliminate lost opportunity cost, and keep resources available for unexpected expenses, financing the premiums is a smart option to consider. Because of the complexities and unique structure of multi-participant arrangements, it’s important to find the right life insurance premium financing company to help.

Partnering with a company that has expertise in this space can help you navigate a complicated arrangement. The right partner should also be able to build customized solutions and quickly finance an arrangement that works for your business. By financing the premiums, you can provide an enticing life insurance policy to top executives without stunting your business’s growth.

For more information on how Wintrust Life Finance can help your business navigate a complex multi-participant arrangement please visit wintrustlife.com.

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