High & ultra high net worth families
Estate liquidity and wealth transfer funded with borrowed premium, so investments stay invested and assets are not sold to pay premiums.
Premium finance
Life insurance premium finance · High net worth & business
Own the coverage. Keep your capital working.
Oak Insurance Group designs and finances large life insurance plans for high net worth families, business owners and the advisors who serve them. Every loan, collateral requirement and exit is planned before a policy is placed.
Since 2003Our principals have structured life insurance and premium finance for more than two decades
$12B+In life insurance premium financed since 2003
National carriersAccess to nearly every national carrier writing life insurance
Life & health onlyLife, LTC, disability and supplemental. No property and casualty.
Who we work with
A specialty finance practice for complex life insurance
Most of our cases arrive through an advisor. Some arrive directly from a family office or business owner. Either way, the advisor relationship stays intact.
Business owners
Buy-sell funding, key person coverage, succession plans and executive benefits, structured around the company's cash flow.
Business planningLife insurance agents
Large-case design, carrier selection, underwriting advocacy and premium finance structuring for cases you bring.
Advisor supportFinancial planners & RIAs
An insurance partner that models the plan against the client's balance sheet and documents the reasoning for your file.
For plannersEstate & business attorneys
Policies sized and owned to fit the trust or entity you are drafting, with lender requirements known in advance.
For attorneysCPAs
Clear funding schedules, loan interest projections and modified endowment testing that hold up in the client's tax picture.
For CPAsPremium finance, in four steps
The bank pays the premium. The policy secures the loan.
A third-party bank loan funds the premiums on a permanent policy owned by a trust or entity. The policy's cash value, plus any collateral the borrower posts, secures the loan until it is repaid.
Design
We size the death benefit and choose the carrier and product, then model the loan at today's rate and at stressed rates.
Underwrite
Medical and financial underwriting with the carrier, and credit underwriting with the lender, run side by side.
Finance
The lender issues a term sheet, the trust or LLC borrows, and premiums are paid directly to the carrier.
Exit
The loan is repaid from policy values, outside assets or the death benefit, on a timeline set at the start.
What we test before a case is placed
Leverage only works when the risks are named first
Properly structured life insurance is the exception, not the rule. We design for the life of the plan, not the day of the sale.
- Interest rate risk. Most premium finance loans float. We show what happens to the plan if the loan rate rises above the policy's crediting rate.
- Loan duration risk. Many loans renew every one to five years while the funding plan runs longer. We match the loan term to the funding schedule or plan the refinance.
- Collateral calls. Early cash value rarely covers the loan. We project the shortfall each year and what the borrower may need to post.
- Policy performance. We model below the illustrated rate so a weak crediting period does not break the plan.
- Exit strategy. How and when the loan is repaid is decided at the start and reviewed every year.
Planning needs we solve
Where life insurance does the work
Estate liquidity
Cash at death for estate taxes and settlement costs, so heirs are not forced to sell.
Wealth transfer
Income tax free death benefit inside an irrevocable trust for the next generation.
Wealth preservation
Protection for existing wealth, with cash value that can supplement retirement income.
Business succession
Funded buy-sell and redemption agreements that keep the business intact.
Key person
Coverage on the people whose loss would hit revenue, credit lines or valuation.
Executive benefits
Multi-life and split-dollar plans that recruit, retain and reward leadership.
Long-term care
Standalone and hybrid coverage for extended care, without draining the estate.
Income replacement
Life and disability income coverage sized to what a family actually depends on.
§125
For employers: Oak125
Our Section 125 supplemental benefit program layers a pre-tax indemnity plan over your existing major medical coverage, lowering payroll tax and raising take-home pay for most enrolled employees.
Insights
All insightsWhat we are reading this month
Indexed Universal Life: Tax-Free Promise or Costly Illusion?
A fair look at both sides of the IUL debate, including the criticism aimed at premium-financed designs. The structure holds up when the loan, the collateral and the exit are tested at conservative rates before the policy is placed.
Read the storyAcademy comment letter on IUL and premium financing to the NAIC
The Academy's illustration subcommittee told regulators that premium financing is mainly a sales-process and best-interest question, not an illustration problem. That is why we document suitability, collateral and exit on every financed case.
Read the storyThe next growth phase in life/annuities depends on modernization
Carriers are rebuilding underwriting and service on modern systems. Speed matters most on large cases, where a few weeks of underwriting delay can outlast a lender's term sheet.
Read the story