We provide a unique opportunity for owners of Whole Life and Indexed Universal Life (IUL) insurance policies who need liquidity but don’t want to give up the insurance coverage provided by the policy.

Policy owners may be able to take out a loan against their own policy using ONLY the Policy as collateral – there is NEVER any personal liability or responsibility for repayment during the term of the policy. They can receive cash at closing (usually 97-98% of the cash value (less only the lender’s arrangement fee), while not paying taxes on any realized gain. Again, Clients will no longer be required to pay future premiums out of pocket while also retaining a portion of the tax-free death benefit for their beneficiary(ies).

It gets even better. The loans offered through FairMarket Advisors have a fixed annual percentage rate for the life of the loan and no current principle or interest payments are ever needed. All interest can be accrued for the entire term of the loan and added to the principal balance due and payable from the policy death benefit.

FairMarket Advisory enables and empowers your clients to convert their permanent cash value policies from a problem to a solution.

(1) No medical records or questions to answer – no medical underwriting necessary for eligibility.

(2) No minimum/maximum age of insured(s) required.

(3) Single or joint life policies eligible.

(4) If owner has previously borrowed from policy cash value, loans arranged by FairMarket Advisory will include 100% non-taxable re-financing of the policy loan at a low, fixed annual percentage rate with any excess loan amount being paid in cash at closing to the owner. (Which may help agents’ renewal commissions and persistency rates.)

This could include getting cash upfront while also avoiding the “tax time bomb” (paying ordinary income taxes on gains when a policy lapses or is sold). In addition, the client can keep their policy death benefit in force in which beneficiaries participate without paying future premiums.