#29 Highlight Finance #29

  Using Life Insurance Premium Financing for Estate Liquidity 📌 Table of Contents What Is Premium Financing? Why Use It for Estate Liquidity? How the Strategy Works Key Benefits of Premium Financing Risks and Exit Strategies Conclusion What Is Premium Financing? Premium financing is a strategy where a high-net-worth individual borrows funds from a bank or specialty lender to pay the premiums on a large life insurance policy. The insured pays only the loan interest annually—or may even roll interest into the loan—while the lender pays the policy premiums. This approach is especially useful when liquidity is tight or when it's financially advantageous to retain invested assets rather than liquidating to pay premiums. Why Use It for Estate Liquidity? Large estates often face significant estate taxes, creating a **liquidity crunch** for heirs. Using life insurance for liquidity provides instant capital at death to pay taxes, fund business transit...

  Why Central Bank Digital Currencies (CBDCs) Matter for Investors Central Bank Digital Currencies (CBDCs) are no longer theoretical—they're in development, testing, or deployment in over 100 countries worldwide. As digital cash issued by national authorities, CBDCs could fundamentally reshape the financial landscape, influencing payments, monetary policy, and capital markets. In this post, we explore why CBDCs are critical for investors to understand, and what implications they might hold for various asset classes and portfolio strategies. Table of Contents What Are CBDCs? The Global Rollout of CBDCs How CBDCs Could Impact Investors Risks and Uncertainties How to Prepare as an Investor Conclusion What Are CBDCs? CBDCs are digital forms of a nation’s fiat currency, issued and regulated by the central bank. They are different from cryptocurrencies like Bitcoin in that they are backed by the government and represent a legal claim on the issuing authority. CB...

  Investing in Bank-Owned Life Insurance (BOLI) as an Institutional Strategy Bank-Owned Life Insurance (BOLI) is a specialized financial tool that plays a key role in the strategic planning of banks and financial institutions. By investing in BOLI, banks can improve earnings, offset employee benefit expenses, and achieve tax-efficient growth—all while strengthening long-term financial stability. This article will break down what BOLI is, how it works, why it’s popular among banks, and what investors should understand about its role in the financial system. Table of Contents What Is Bank-Owned Life Insurance (BOLI)? How Does BOLI Work? Benefits of BOLI for Banks Risks and Considerations What Investors Should Know What Is Bank-Owned Life Insurance (BOLI)? BOLI is a permanent life insurance policy purchased by a bank on the lives of key employees, where the bank is both the owner and beneficiary. The cash value of the policy grows tax-deferred, and the deat...