Find an advisor for your wealth planning.

Life insurance premium financing

Leverage your net worth and liquidity to secure life insurance while maintaining your long-term investment and estate strategies.

Find an advisor

Is life insurance premium financing right for you?

Life insurance is an essential part of an estate plan—but the premiums can be expensive. Consider a premium financing strategy that includes paying estate taxes with the proceeds from a high-value life insurance policy.

Benefits

  • Use leverage to maintain your long-term investment strategies.
  • Avoid untimely taxes from liquidating your assets to pay premiums.
  • Purchase life insurance ahead of an expected liquidity event, such as the future sale of a business or an anticipated inheritance.

Factors to consider

  • Ideal candidates should have significant unencumbered liquidity, cash flow, and net worth.
  • Life-insurance needs may include income replacement, business succession planning, debt repayment, next-generation legacy, estate liquidity, estate tax, and other settlement costs.

Life insurance premium financing FAQs

Component ID : "faq-1289561333"
Model : "faq"
Position : "left"

Typically, Truist makes a premium loan to an Irrevocable Life Insurance Trust (ILIT). Then the trust pays the life insurance premiums as well as the interest payments on the loan. When the insured passes away, only the outstanding loan balance is subtracted from the death benefit. If properly structured, the trust receives the remainder free of income and estate taxes for the trust beneficiaries.

By funding your ILIT with a loan rather than direct contributions, you may limit your exposure to gift taxes, minimize the use of your lifetime gift-tax exclusion, and avoid disturbing or liquidating your investment portfolio to pay premiums.

Like all forms of secured lending, life insurance premium financing carries special risks that you should consider. For example, an increase in interest rates will increase borrowing costs and lower returns. A decrease in collateral value may limit your ability to obtain advances, or it may require you to pay down the loan or deposit additional cash or securities. If you’re unable to meet a collateral call, Truist can force the sale of securities. There’s no guarantee that Truist will renew the loan. Talk to your advisor to learn more about the risks of financing life insurance premiums.

Yes. To discuss potential tax implications and how they may apply in your situation, please contact your tax advisor.

Component ID : "accordionGridLayout-1194370725"
Model : "disclaimer"
Position : "left"

Disclosures

Truist Bank, Member FDIC. © 2025 Truist Financial Corporation. Truist, the Truist logo, Truist Purple, LightStream, and the LightStream logo are service marks of Truist Financial Corporation.

Equal Housing Lender

Investment and Insurance Products:

  • Are Not FDIC or any other Government Agency Insured
  • Are Not Bank Guaranteed
  • May Lose Value

TRUIST is a service mark of Truist Financial Corporation (Truist) and its affiliates.

Services provided by Truist Financial Corporation (Truist) affiliates: Banking products and services, including loans and deposit accounts, provided by Truist Bank, Member FDIC. Trust and investment management services provided by Truist Bank. Securities, brokerage accounts and/or annuities offered by Truist Investment Services, Inc., an SEC registered broker-dealer, and member FINRA and SIPC, and a licensed insurance agency. Investment advisory services offered by Truist Advisory Services, Inc. and GFO Advisory Services, LLC, SEC registered investment advisers. Some insurance products offered by Truist Investment Services, Inc. Other insurance products offered by Marsh & McLennan Agency, LLC (as successor in interest to McGriff Insurance Services, LLC) CA License #0H18131, Kensington Vanguard National Land Services, and Crump Life Insurance Services. Truist Life Insurance Services (TLIS) is a division of Crump, Arkansas License #100103477. Variable insurance material is for broker-dealer or registered representative use only. Variable products distributed by P.J. Robb Variable, LLC, Arkansas License #100110185. Member FINRA.

Marsh & McLennan Agency LLC, Kensington Vanguard National Land Services, Crump Life Insurance Services, Truist Life Insurance Services, and P.J. Robb Variable, LLC are not affiliated with Truist Financial Corporation or any of its subsidiaries.

Truist Securities is a trademark of Truist Financial Corporation. Truist Securities is a trade name for the corporate and investment banking services of Truist and its subsidiaries. All rights reserved. Securities and strategic advisory services are provided by Truist Securities, Inc., member FINRA and SIPC. Lending, financial risk management, and treasury management and payment services are offered by Truist Bank.

Mortgage products and services are offered through Truist Bank. All Truist mortgage professionals are registered on the Nationwide Mortgage Licensing System & Registry (NMLS), which promotes uniformity and transparency throughout the residential real estate industry. Search the NMLS Registry.

Comments regarding tax implications are informational only. Truist and its representatives do not provide tax or legal advice. You should consult your individual tax or legal professional before taking any action that may have tax or legal consequences.

"Truist Advisors" may be officers and/or associated persons of the following affiliates of Truist, Truist Investment Services, Inc., and/or Truist Advisory Services, Inc. Truist Wealth, International Wealth, Center for Family Legacy, Business Owner Specialty Group, Sports and Entertainment Group, and Legal and Medical Specialty Groups are trade names used by Truist Bank, Truist Investment Services, Inc., and Truist Advisory Services, Inc.

Applications, agreements, disclosures, and other servicing communications provided by Truist Bank and its subsidiary businesses will be provided in English. As a result, it will be necessary for customers to speak, read and understand English or to have an appropriate translator assisting them. Please note that Truist provides translations of webpages, documents and disclosures as a courtesy and in the event of any inconsistencies or discrepancies between the English content and the translated content, the English content supersedes the translation. Truist offers phone support in Spanish at 844-4TRUIST (844-487-8478), option 9. For assistance in other languages, please speak to a representative directly.

New York City residents:

Translation or other language access services may be available. When calling our office regarding collection activity, if you speak a language other than English and need verbal translation services, be sure to inform the representative. A description and translation of commonly-used debt collection terms is available in multiple languages at http://www.nyc.gov/dca.

Borrowers with Limited English Proficiency (LEP) needing information can use the following resources:

The Consumer Finance Protection Bureau (CFPB) also provides additional resources for homeowners seeking payment assistance in select languages at: https://www.consumerfinance.gov/housing/housing-insecurity/help-for-homeowners/

Site footer

Footer Navigation

Banking products
About Truist
Resources
Support

© 2025, Truist. All Rights Reserved.