Understanding IFA – Immediate Financing Arrangement Explained

What is IFA?

Immediate Financing Arrangement (IFA) is an advanced financial strategy that

combines permanent insurance and bank financing, designed for high-income

professionals and business owners.

How IFA Works:

1. You purchase a high-value participating whole life insurance policy

2. Once issued, you leverage the policy’s cash value as collateral

3. A bank provides a line of credit or loan based on that collateral

4. You can reinvest the loan or use it for business needs while the policy grows in

value

Key Benefits:

Capital Efficiency: Access capital immediately after funding your policy

Tax Advantages: Loans are not considered taxable income

Wealth Growth: Continue to grow assets while using borrowed funds

Legacy Planning: Tax-free death benefit passes to beneficiaries or trust

Who Should Consider IFA?

Business owners or professionals with strong cash flow

Those looking for high-leverage strategies for investment or estate planning

Clients with tax burdens looking for long-term shelter

Always consult with an experienced IFA planner to ensure regulatory compliance

and strategic efficiency.