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Case Studies

Premium Finance at Work

Two business partners owning a chain of franchise restaurants in a major metropolitan area collectively decided to finance their life insurance premiums with us. They were in need of a significant sum of life insurance to support the funding of buy-sell agreements and estate planning intentions.

If the partners had chosen to fund the premiums for the policies out-of-pocket, they would have had to give up over $4 million of potential annual capital investment. The death benefit of the policies at funding totaled $50 million.

By financing their policies with Pacific Western Bank, they were able to retain substantial capital to invest back into their business, which subsequently lead to them opening multiple new locations. Their financial advisors informed us that the additional revenue from their new restaurants yielded a net benefit that more than paid for the financing, while providing personal and professional risk management benefit to the partners. This case study illustrates the value of premium finance as a meaningful tool for capital preservation.