FIRST is actively engaged in the refinancing of internal policy loans on in force life insurance contracts. The ability to borrow against policy cash values is a valuable feature of permanent life insurance policies but insurance carrier loan rates can be higher than what the capital marketplace could offer. By refinancing internal policy loans with FIRST a client can realize several advantages.
- By refinancing the internal policy loan the underlying policy can potentially perform better long term
- In some instances the majority of the collateral required for a policy loan refinance can come from the policy itself
- Refinancing an internal policy loan may stave off the potential for policy lapse and subsequent taxable events
- Policy holders are likely to experience more flexible loan options when refinancing with FIRST