BackNine: Pioneering Strategic Advanced Market Solutions

Paul Pichie

9/17/2023 · 4 min read

BackNine’s strategic expansion through collaborative efforts with like-minded companies dedicated to automation and technology in the advanced life insurance markets marks a significant milestone in the industry’s evolution. Our Advance Markets department now supports premium-financed life insurance designs on automated quoting and submission platforms while ensuring that these solutions adhere to conservative constraints and meet the due diligence standards upheld by financial services firms nationwide.

In the realm of financial services, the concept of premium financing has long been a cornerstone of strategic planning, primarily adopted by individuals entrenched in the life insurance industry. With a focus on nationwide marketing and life insurance products, these professionals understand the nuances of ensuring a secure financial future.

Financed life insurance plans are divided into two sub-categories: traditional and bank leveraged arrangements, each deserving recognition for their unique attributes. Both options have their merits, catering to diverse preferences and needs, offering policyholders distinct advantages.

Traditional premium-financed plans are renowned for their intricacy, requiring ongoing management and a policy owner with financial sophistication. Therefore, BackNine restricts these services to agents whose clients possess a minimum net worth of $15,000,000 and a suitable profile for long-term planning. Beyond suitability screening and case design, we partner our agents with established lending brokers, handling substantial premium loans, to provide clients with a straightforward and reliable path forward.

The premium lenders we recommend go beyond the conventional role of a bank, by harnessing a rich pool of resources, tapping into multiple capital avenues, and crafting solutions exclusively designed for the life insurance sector. This involves leveraging not just banking resources but also integrating proprietary capital markets to serve the distinctive financial demands of affluent individuals. These institutions work to facilitate financing solutions not just for newly minted life policies but also for existing ones, ensuring a broad spectrum of clients can benefit from their expertise.

In the world of premium financing, bank-leveraged planning stands out for its ability to reduce risk in premium financing arrangements. This reduction encompasses several key elements: no loan underwriting, no financial credit checks, no loan documents, no interest payments, and no personal guarantees.

While traditional premium financing typically caters to the affluent and high-net-worth, our program takes a more inclusive approach. BackNine achieves this by leveraging a streamlined process, powered by the same seamless technology featured in their Quote & Apply™ software, to reach individuals earning annual incomes of $200,000 or more across all 50 U.S. states. This effort underscores BackNine’s commitment to make premium-financed life insurance accessible to a broader audience and empowering more life insurance agents to better serve their clients.

For agents that find themselves with clients in the upper echelons of income earners making $200,000 and up, those clients’ lives might seem more comfortable than for most. However, this higher income often comes with its own set of challenges, particularly when it comes to saving for a secure retirement. Depending on who you ask, 40% to 60% of working Americans have not saved enough for their future retirement. With most financial planners suggesting clients put aside 10% to 20% of their pre-tax income to achieve a comfortable retirement. BackNine recognizes these challenges and offers tailored solutions, including leveraged life insurance planning, that have the potential to significantly enhance supplemental retirement planning for licensed life insurance agents.

One often overlooked advantage of premium-financed life insurance is its capacity to empower you as an advisor to educate your clients on using pre-tax dollars (via premium loans) to further enhance their supplemental retirement planning. These plans undergo meticulous design and rigorous stress testing, all with the anticipation that those pre-tax dollar premium loans will be repaid from the policy cash values. As a result, your clients may have the potential to access 60 to 100 times more in living and death benefits. This balanced approach emphasizes both growth and protection, ensuring that clients have a spectrum of options at their disposal. This not only provides financial security but also the flexibility to customize their supplemental retirement plan to align with their unique needs.

For agencies and agents seeking a streamlined and tech-savvy approach to life insurance marketing, BackNine Insurance & Financial Services, Inc. is the partner of choice, offering a comprehensive suite of tools and services tailored to the modern digital landscape. For more information on these solutions or to learn more about BackNine and how to get started, please contact BackNine’s Director of Advanced Markets at (818) 221-0010 or [email protected] or visit us online:

The Power of Leverage