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Premium Financing: What’s Hot and What’s Not in 2022

Morgan Goheen brings together an expert panel to discuss some of the recent changes and successful strategies in premium financing today.

Goheen Insurance President Shawn Goheen sat down with Tom Tous, executive vice president of Elite Producer Group, to talk through some of the latest changes, trends and strategies that they’ve noticed in 2022, including a case design study with Jerry Dresner, Goheen Companies CFO.

‍Strategy to Close More Cases

Goheen Insurance has noticed a trend where advisors are trying to paint a “too good to be true” scenario, and people are starting to become more hesitant. If you’re bringing in a lot more cases than you’re closing, it’s time to try a different strategy.

“We go into cases talking about exposing the elephant in the room first. And that means going through the negatives of premium finance, what the issues can be, and really knock that out up front,” Goheen explained. “Allow them to understand this isn’t just hunky dory, there are some negatives to it.”

With this approach Goheen Companies and the advisors they work with are successfully closing some of their biggest cases, $50-65 million cases over the last few months.

Red Flags in Premium Financing

Because Goheen Companies provides premium finance rescue, a service created to help with underperforming or issues within a policy from other companies,  the team has gained unique understanding and access to the legal pieces associated with premium financing. They’ve learned some key things to watch out for.

In particular:

  1. Selling too much death benefit
  2. Not making it clear that interest rates will go up
  3. Not including stress testing in their illustrations

This is partly why stress testing is such an important part of the Goheen Companies process, and Goheen believes that proper stress testing is one of the key reasons to the company’s 97% persistency rate.

Importance of Stress Testing for Better Outcomes

Stress testing is also more important than ever because banks are getting stricter about their premium financing agreements. They’ve seen too many cases written without stress testing or appropriate planning for interest payments and are starting to require better illustrations.

A successful stress test should take into account the collateral, annual interest rate increases, and also an exit strategy for the future, Goheen argued.   

“[You need] to make sure that (A) the person can handle the collateral and  (B) you’ve got the interest rate increases on an annual basis,” he explained. “And the last part, which I believe is one of the most important pieces, is to have an exit strategy. How do you get out of this contract? Those are the three things that I think are the most important part of a premium finance case.”

Policy Delivery Receipts

Another important tool to protect against legal risks is a detailed policy delivery receipt. Goheen believes that these receipts are vital for any type of life insurance, not just premium finance.‍

“Just giving them a piece of paper and saying ‘Did you read our policy?’, that doesn’t work in the legal system, and the E&O carriers don’t understand a policy receipt that’s just the one little signature form,” he shared.

Instead, Goheen Companies works with a detailed receipt where the client signs off on multiple questions, showing that they read the policy, agreed to the banking terms, and more. That way, the client cannot claim that they didn’t know the terms of their policy and it serves as an extra layer of protection.

How Partnering with Goheen Can Make a Difference

Along with its extensive experience in premium financing, Goheen Insurance also has a few unique features that allow them to have greater flexibility when creating premium finance cases. 

“Goheen Insurance has access to at least 15 different banks, and we have a variety of ways to look and shop banks to figure out how we can best meet the needs of the clients that we run case designs for,” Dresner shared.

The company is also committed to working with advisors and their clients from start to finish to create the policy that fits their needs and goals. 

“Our turnaround time is probably the fastest in the industry. We also take care of your APSs, medicals, from start to finish, soup to nuts, we do the whole thing for you,” Goheen shared. 

If you’re interested in learning more about how you can partner with Goheen Insurance on premium finance life insurance, contact us today. 

Post Tags :

Life Insurance, Premium Finance, The Simplicity Company, Tips, Wealth Management


Meet Shawn Goheen, the heart and soul behind Goheen Insurance. Since the early ’90s, Shawn has been more than just a financial advisor; he has been a trusted confidant to high-net-worth individuals. His journey has led him to build strong connections with over 15 specialty lenders and insurance carriers, and relationships with 20+ banks, giving him a rare edge in navigating the often-complex financial world with ease and transparency.