Miami-based financial services firm PFG, whose focus has been on the financing of life insurance premiums since 2002, has seen high interest rates before. In 2000, prior to the Dot-com crisis, rates were close to 7% and again in 2006-08 when rates were at 5.5%. “Markets are always on the move. It’s all about being able to react and adjust when the tide shifts” says Manuel Vidal, President and CEO of Premium Finance Group.
The company shares their strategies and tools that can help clients offset the effects of rising interest rates. As the Fed continues to move towards the inflation goal of 2%, interest rates could continue to increase. “The key is to be ahead of the curve and provide clients with the flexibility to react to current market conditions”, states Manny.
One of the strategies proposed is for clients to stop borrowing money temporarily, pause the funding for a while, in order to avoid the cascading effect of both the increased debt and, consequently, higher rates. In other words, clients are provided with the opportunity to put a break on the current loan by not borrowing further in order to avoid increasing the principal debt amount.
Another important strategy the company shares is leveraging dormant assets to offset the higher rates via a Lombard Loan. Here clients can borrow at rates of 1% or less and wait until interest rates drop again before pivoting back to the typical loan structure where the cash values of the policy are used as collateral.
The third strategy shared by the company is related to the repayment of the loan. The company suggests repaying a portion of the loan earlier than its expected maturity period. This helps the clients to reduce the burden of their out of pocket as a lower debt offsets the higher rates.
Being a family-owned business, Premium Finance Group is committed to protecting their clients’ families and business interests. They want to be proactive in assuring that these policies continue to satisfy the goals and needs of their clients, even as the economic trends continue to shift. Since the company was founded in 2002, it has become one of the premiere providers of cutting-edge life insurance solutions around the world.
About Premium Finance Group (PFG)
PFG is a family owned, boutique life insurance company that works closely with clients every step of the way, from designing the insurance policy, to maximizing cash accumulation, and monitoring the policies on an annual basis. Manny Vidal and his company work closely with their clients to determine how best to protect their wealth and provide for their family’s well-being. Maintaining correspondent relationships with leading insurance firms in major markets around the world, Manny and his company pride themselves on ensuring all regulatory considerations are met and adhere to the highest legal and ethical standards.
Media contact
Name: Danielle Vidal
Email: dvidal@premiumfinancegroup.com
