Goheen Insurance: Securing Legacies with Expertise and Integrity.
November 22, 2022
Premium Finance
Shawn Goheen explains the state of the union in premium financing and answers advisor questions about how Goheen Companies can help your clients take advantage of premium finance solutions.
Premium Finance in a High Interest Environment
When interest rates are high, it’s especially important to partner with someone who has many bank relationships and can find the best possible rate for your client.
“Goheen has about 15-17 different banks that all have different types of financing programs, so we have interest rates that are still falling in the high 4s and low 5s,” Goheen shared in the webinar.
“I think it’s the most important piece of our practice, that we have the flexibility to be able to move these loans around like we do, but secondly, it gives your clients the comfort that we can fix anything that’s out there when it comes to the bank problems.”
This is especially valuable right now, because many banks are moving slower than usual, or in some cases, not issuing new loans at all.
“A lot of these banks are at full capacity, meaning they’re not taking new loans,” Goheen explained. “We’ve never moved so many banks in a year like we have this year.”
When banks are willing to take on new premium finance cases, they’re more focused than ever on making sure the designs will hold up even if economic conditions worsen.
At Goheen Companies, we conduct a thorough five zeros stress test, which helps ensure that our clients can manage the collateral requirements and annual interest rate increases. Goheen believes these stress tests are the primary reason we’ve been able to maintain 97.3% persistency rates for almost three years, and 100% persistency so far this year.
“You really have to understand and make sure your clients are able to fund these collateral positions. And if you don’t run your cases on zeros, they’re going to have a lot of issues now and going forward,” Goheen argued.
Goheen companies have seen many policies lately where people have gotten into trouble because the advisor was either new to premium financing, oversold, took shortcuts with stress testing, or didn’t educate the client properly. If you find yourself in this situation or a client has come to you with a bad case, Goheen Companies can provide a complimentary premium finance rescue review to determine where the issues are. However, it’s always better for the client and you to get it right the first time.
“Either do it right or walk away from it. You don’t have to take every case,” Goheen encouraged.
A New Alternative to Premium Finance
Goheen Insurance newest offering — in partnership with Optimus Life Designs® — is a valuable alternative for clients who are interested in the benefits of premium financing, but require more flexibility or lower premiums.
With Life Insurance Financed Equity (L.I.F.E.), life insurance is purchased in an LLC or trust, and the minimum premiums are $50-75K. Clients can also choose in the third year if they want to finance their premium with a bank loan.
“You have the opportunity to be a lot more flexible on when you pay off the loan, how you pay off the loan, and when you start taking your distributions,” Goheen explained.
Unlike similar products in the industry, L.I.F.E. allows you to do 1035 exchanges, set up second-to-die insurance, and receive all compensation up front.
“We really believe that the market is going to change in the next year, year and a half to this other type of design that we’ve developed so that people have that flexibility of finance and non-finance solutions,” Goheen shared.
If you’re interested in learning more about how partnering with Goheen Companies can help you provide high-quality premium finance solutions to your clients, please contact us today.
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Life Insurance, The Simplicity Company, Tips, Wealth Management
SHAWN GOHEEN
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.
We would love to speak with you personally about any of our services. Contact us today for a free consultation or to learn more!
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