Overview

The iNote refers to the issuance of debt in the capital markets to fund life insurance premiums. Qualified clients have the ability to issue long term notes, up to 30 years, to fund their insurance policy. The client is financially underwritten by a national bank, and once approved, the bank essentially lends its credit rating in the form of a Letter of Credit to be converted into a note. The note will be institutionally rated.

Our investment banking partner in this transaction has issued approximately $8,000,000,000 of these notes for various purposes over the last 20 years. This is an ideal strategy for business owners, developers, and others that may have a need for inexpensive capital in addition to the amount needed to pay their life insurance premiums.

The biggest draws of this platform are an interest rate under 2% (all in) and that the note is structured so as the proceeds are received day one to fund future premiums. The client need only to requalify for the Letter of Credit iNote following its term.

What is Required For a Term Sheet

1.) 3 years most recent tax returns
2.) Current 3rd party financial statement – may request supporting brokerage and account statements
3.) Copy of owner documentation – ILIT or corporate resolutions
4.) Informal medical underwriting offer – we don’t want to go to the bank until we are confident the insurance can be issued
5.) Policy illustration to be financed

Things to Consider

1.) The client must have the liquidity or means to establish a relationship with the bank in addition to the collateral. That relationship will be commensurate to the size of the borrowing.