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CAPITAL MAXIMIZATION STRATEGY

The Capital Maximization Strategy (CMS) is a program designed specifically for use in estate planning and business planning cases.

The CMS program offers clients an alternative method of paying life insurance premiums.  With CMS, the funds needed to pay premiums are borrowed from a third-party lender so that the client’s current investment portfolio may continue to grow.  The program assists high-net-worth clients who have a predetermined life insurance need, yet are unwilling to make premium payments from their current cash flow.  Through this program, clients may borrow funds to pay their life insurance premiums, thereby potentially reducing their immediate net out-of-pocket expenses.

Potential benefits of the program include:

	Reduced current net out-of-pocket cost for life insurance coverage.
	Minimal or no impact on current investment portfolio.
	Avoid or minimize exposure to gift taxes.
	Potential for favorable interest rates on borrowed funds.

The CMS program is designed for clients with a minimum net worth of $5,000,000 and a minimum first-year life insurance premium financed of $100,000.

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