Webinar Recap: The Elite Growth Academy and Premium Financing Insights
Welcome everyone to this Facebook Live session! We’re excited to kick off a series of conversations leading up to the Elite Growth Academy happening this June. Today, we’re diving into a niche topic with one of our expert speakers, Daryn Giugiamo, who is a leader in premium financing and the virtual family office space.
Meet Daryn Giugiamo
Before we dive into the discussion, let’s give a formal introduction. Daryn Giugiamo started Apex Employee Benefits in 2003 and later founded Linesmart Capital in 2016, a dominant premium financing intermediary firm in the life insurance industry. He’s an internationally recognized eight-time author, business coach, and mentor.
Daryn, we’re thrilled to have you join us this June in Nashville. What can attendees expect to learn from you?
Premium Financing in 2024: What You Need to Know
Daryn:
Thank you for the warm welcome! I’m excited to be here and looking forward to the Elite Growth Academy. One of the key topics I’ll be discussing is the various methods of financing life insurance premiums. We’re not a one-size-fits-all firm; every client is different in terms of net worth, liquidity, and risk tolerance, so we use a range of financing platforms.
A big question I’m hearing right now is about rising borrowing interest rates and how they impact premium financing. While some see this as a challenge, I actually think it presents exciting opportunities and will reveal which programs are being managed properly—and which ones are not. We believe in responsible leverage and have proprietary software that helps advisors, clients, and their CPAs determine when premium financing makes sense and when it doesn’t.
A Closer Look at Responsible Premium Financing
Host:
I love that you mentioned the misuse of premium financing. I remember back in 2008, it became all the rage for high-net-worth clients, but some of the approaches seemed overly aggressive. Can you speak more about what has changed since then?
Daryn:
Absolutely. Premium financing isn’t all that different from financing real estate or other valuable assets. But around 2008, we saw the market shift, and I believe we’re about to see another shift in the next few years.
Back then, people were pushing aggressive financing designs with promises of “free insurance”—no money down, negative amortization loans. That’s similar to buying real estate in 2006 with risky mortgages that backfired during the financial crisis of 2008. Today, some programs are equally risky. Clients need to make informed decisions about the risks they’re taking, and unfortunately, many are about to get burned if these aggressive programs continue unchecked.
The Importance of Accurate Modeling and Proactive Tools
Host:
You also touched on your proprietary software. Can you explain why you developed this tool and how it’s helping advisors and clients?
Daryn:
Sure. The problem with traditional premium financing models is that they often rely on assumptions, like illustrating at a set index crediting rate that may not reflect reality. But there’s no room for “feelings” in math. What I wanted to do was create a transparent, data-driven tool that analyzes whether premium financing is truly viable for a client.
We modeled 121 different 40-year historical windows of S&P 500 performance to test how premium financing arrangements would perform under different market conditions. This allows us to help clients and advisors see the full range of outcomes—not just a cherry-picked projection based on arbitrary rates.
Why Premium Financing?
Host:
You’ve clearly invested a lot of time and energy into premium financing. What sparked your passion for this niche?
Daryn:
I actually got introduced to premium financing as a client. I was in the insurance space starting in 2003, and by 2008, I had built a successful firm. But I made the mistake of trusting an advisor who didn’t fully explain the products he was selling me. I ended up with 17 life insurance policies that had zero surrender value and a hefty tax bill. That experience pushed me to learn everything I could about cash value life insurance and premium financing.
Since then, I’ve built a firm focused on educating clients about the real risks and rewards of premium financing. Once clients understand the math and the logic behind it, it’s hard for them to say no, because the numbers speak for themselves.
Wrapping Up
Host:
As we wrap up, Daryn, what can our attendees look forward to from your presentation in Nashville?
Daryn:
I’ll be speaking very bluntly about the premium financing world—no punches pulled. The truth is, when done correctly, premium financing is a powerful tool for the right clients. But when people get greedy or aggressive, it can be dangerous. I’ll show the truth about what works and what doesn’t in this space.
Key Takeaways
- Premium financing offers significant opportunities but must be done responsibly.
- Interest rates are rising, and the programs that survive will be the ones built on sound strategies.
- Daryn's proprietary software helps advisors and clients make educated decisions based on real-world data.
- The right approach to premium financing can bring immense value to clients, but aggressive designs can lead to disaster.
