Onyx Capital Management, LLC has access to a unique and exciting new life insurance premium financing strategy that eliminates the risks and drawbacks of traditional Libor-based premium financing. The Fully Funded Insurance Trust provides access to the capital markets using a proprietary funding structure, allowing high net worth individuals and estates to borrow at the same rate as Fortune 500 companies.

What is ONYX CAPITAL FUNDING STRATEGIES

In building the best program, Onyx Capital chose to incorporate sound, basic business principles such as those you have used to attain your wealth. At the backbone of any business plan is the ability to take assets, capital in this case, leverage it, and generate a fund larger than your initial capitalization. The prudent business and as such, is the heart of the Onyx Capital Funding Strategies program.

Here are the components in this business plan:
One key method of providing tax free funds to pay inheritance tax is through Life Insurance. Onyx Capital works with many insurance companies to find the best insurance plan for your needs. Not all policies are the same but the professionals at Onyx Capital will find the best plan for your situation incorporating life insurance and capital appreciation.

Payment of premiums in life insurance policies of this size can tend to deplete the liquidity of the estate. We search for the lowest cost of capital and invest it conservatively to provide the best return with the lowest risk. During this process, we will also make premium payments while growing wealth. After a reasonable time, these productive revenues will grow to a level sufficient enough to repay our source capital obligation. All during this process, you will always have a life insurance policy in force in the event that its needed.

Why not use the same tools you used to build your estate when it comes to estate planning. Leverage capital for premium payments, not touching the estate, and only posting collateral in the early years. Your family can feel secure that funding for estate taxes will be available when its needed.

What risks are mitigated in the Onyx Capital Funding Strategies program?

• Traditional bank financing locks the borrowing rate in for a year. The Onyx Capital Funding Strategies Program utilizes capital with a 7 day variable rate much lower than bank financing. In the event that the client may wish to lock into a fixed rate at a later date, this program also allows for a swap.
• Bank financing renews annually at which time you must re-qualify. The Onyx Capital Funding Strategies Program is good for 20 years giving the client the security of knowing the funding will remain in place for that period of time.
• The client will be asked to post some collateral early in the process under the Onyx Capital Funding Strategies Program and only a limited guarantee is required..
• In bank financing, there can be a delay between the time you make your payment at the end of the year and when your renewal is approved. In the meantime, you may have a premium payment that must be made.

By leveraging existing estate assets, the Fully Funded Insurance Trust minimizes the client’s personal guarantee exposure. The Fully Funded Insurance Trust represents the most tax efficient insurance product on the market today. High net worth families are able to transfer wealth while avoiding punitive life time gift taxation rates, as the insurance premiums paid are not considered gifts to the beneficiaries.

The Fully Funded Insurance Trust allows clients to access the capital markets while lowering their interest costs and increasing their flexibility. The long-term financing offered by Fully Funded Insurance Trust reflects the length of the premium pay-in period, thus avoiding the risky mismatch of funding long-term asset with a short-term Libor-based bank loan. The client is able to access funds at lower interest rates with no spread to the bank, and thus no risk of the bank increasing the financing spread from year-to-year.

The Fully Funded Insurance Trust is a game-changer in the premium finance business. The Fully Funded Insurance Trust has helped many high net worth individuals provide for the efficient accumulation and transfer of wealth.

We look forward to working with you to bring the benefits of our unique structure to you.