C3 Financial Partners

January 2023 Newsletter

It’s Time to Assess Premium Financing Arrangements

Over the past decade, a common method to fund permanent life insurance was to finance the premiums and to take advantage of the difference between the lending interest rate and the dividend or crediting rate on a policy.

From a design perspective, this strategy was presented as a way to lower the costs of obtaining a large amount of life insurance while preserving cash flow.

Today, many policyholders who financed the premiums to purchase their life insurance policies find themselves facing skyrocketing lending interest rates, collateral that is worth less or is insufficient and policy performance that lags due to how insurance companies invest premiums. In effect, some of these policyholders may be “upside down” in their financing arrangements and not realize it.

Click the button below to read our blog explaining this potential problem in greater detail and explaining how C3 Financial Partners can help you and your clients if they find themselves in this situation.

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IRS Applicable Federal Rate Update

The February AFR rates have been released with the short- and mid-term rates decreasing slightly while the long-term rate increased a bit.  To see the current rates, as well as the historical rates, you can view our AFR report at the link below.

See the AFR Report

Upcoming Event

C&C Event | Michael Kiolbassa, President, Kiolbassa Smoked Meats

Wednesday, February 1st  – Noon CT

C3 Financial Partners’ next C&C event will feature Michael Kiolbassa, President, Kiolbassa Smoked Meats.

This presentation will detail how building a values-based and open-book culture transformed the Kiolbassa Smoked Meats company and team.

We look forward to hosting Michael and learning better ways to provide continuity of service to our clients.

Registration for this event is available at the link below.

Register Here

Individuals and businesses, even nonprofits, engage us to identify, prepare for, and manage some of the risks they can't control.
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