Clients are attracted to this strategy because it provides an opportunity for a significant tax-free retirement income and a large life insurance death benefit, both created with relatively minimal cash outlay. 

Because of the policy guarantees, the lenders that provide the financing are willing to take the policy as collateral. In some circumstances, the lender will also loan your client the interest on the loan as well as the principal, provided that your client can provide good collateral to ensure repayment. 

So, in all events, your client does have the obligation to pay (or repay) the interest component of the loan. But the impact of the arbitrage can be dramatic, especially considering the risk profile of the strategy.

Advisors who are helping place the LegacyPlus strategy are discovering the commission income they generate from placing the product can double or even triple their income in a single year. Attorneys who participate in placing the strategy are paid fees for putting the structure in place and can also be paid commissions if the rules in their state permit it. 

This strategy also opens the door to high net worth clients who may want to explore other financial or legal solutions.

The team at Cornerstone has the expertise to help you understand how this strategy works and to help you explain it to your clients and prospects. With their help, this is a solution you can propose with confidence.