Traditional Enhanced Funding

Enhanced
by Design.

Delivering precisely sized, tax-free liquidity at the moment clients need it most — with the lender funding the majority of the premium, and clients contributing a fraction.

Explore the Calculator See How It Works
TEF
Scroll to explore
The Reality

The obligations
don't disappear.

Clients who have built something of significance have also accumulated obligations. The question isn't whether those obligations exist — it's how efficiently they're funded when the time comes.

  • 01
    Outstanding Mortgage
    The family inherits the property — and the payments. Without coverage, the asset becomes a burden.
  • 02
    Business Debt & Personal Guarantees
    Personally guaranteed obligations don't stay with the business. They follow the estate.
  • 03
    Buy-Sell Agreement Funding
    A buyout without funding creates chaos. Partners, families, and lenders all competing for the same depleted estate.
  • 04
    Estate Tax Liability
    At the federal sunset, estates above $7M face a 40% tax on the excess. The IRS doesn't negotiate timelines.
"We know we have a problem. We're looking for the most efficient way to solve it."
That's precisely where Traditional Enhanced Funding begins. Not with the existence of the liability — but with the most capital-efficient structure to address it. The lender enhances the client's contribution. The result is a precisely sized, tax-free benefit delivered at exactly the moment it's needed.
0%
Federal income tax on life insurance death benefits transferred to beneficiaries
The Comparison

Three ways to address
the same liability.

Using a hypothetical 55-year-old with a $5M estate growing at 6% annually. At age 85 the estate reaches $28.7M. Federal estate tax post-sunset (40% above $7M exemption) reduces the estate by $8.7M before a dollar transfers. All three scenarios address the same liability — the difference is efficiency.

Scenario A
No Coverage
Client Annual Outlay
$0
No premium — no protection
Estate at Age 85
$28.7M
$5M growing at 6% for 30 years
Federal Estate Tax
−$8.7M
Post-sunset, $7M exemption, 40% rate
Total Legacy Transfer
$20.0M
Plus any outstanding obligations
Return per Dollar Deployed
—
No capital deployed, no planning leverage
The estate absorbs the full tax liability — no leverage, no protection, no planning. Outstanding obligations further reduce what transfers.
Scenario B
Self-Funded Life Insurance
Client Annual Outlay
$268K
Full premium, every year for 20 years
Total Premium Paid
$5.4M
After-Tax Estate + $10M DB
$30.0M
$20.0M estate + $10.0M tax-free benefit
Total Legacy Transfer
$30.0M
Return per Dollar Deployed
1.9×
Every $1 contributed adds $1.90 to the legacy vs. no coverage
Effective — the death benefit covers the liability and more. But the client commits $5.4M in capital over 20 years to get there.
Scenario C
Traditional Enhanced Funding
Client Annual Outlay
$226K
Client contributes a fraction
Total Client Outlay
$2.3M
$3.1M less than self-funded insurance
After-Tax Estate + $26.9M Net DB
$46.9M
$20.0M estate + $26.9M net benefit
Total Legacy Transfer
$46.9M
Return per Dollar Deployed
11.9×
Every $1 contributed adds $11.90 to the legacy vs. no coverage
The lender funds the majority of the premium. At $3.1M less in client outlay, the enhanced benefit delivers $16.9M more legacy than self-funded insurance.
Illustrative example. Male age 55, $5M estate, 6% growth rate, age 85 projection. Federal estate tax: post-sunset $7M exemption, 40% rate. Death benefit values from NLG IUL illustration at year 31. Self-funded: $268,378/yr × 20 years. TEF: $225,985/yr × 10 years, 6× leverage. Not valid without a complete carrier illustration. Actual results will vary.
Estate Planning Tool

What does your
estate look like at 75, 85, 95?

Enter your current estate value and assumed growth rate. We'll project your estate across three time horizons, quantify your tax exposure under both current and sunset exemption rules, and show you the cost of each approach side by side.

Age
75
Near-term
Age
85
Mid-term
Age
95
Long-term
Open the Estate Calculator
The Process

Engineered with
precision.

1
Design the Benefit
We begin with the liability — quantified and precise. Estate tax exposure, outstanding obligations, buy-sell requirements. The benefit is sized to the need, not estimated.
2
Structure the Financing
The lender funds the majority of the premium. The client contributes a fraction — enhancing their capital's reach. Interest accrues and is retired at loan payoff. The client's contribution is real. The lender's enhancement is the advantage.
3
Execute at Claim
At death, the policy pays the death benefit tax-free. The loan is retired. The net benefit transfers to the estate — precisely sized, cleanly delivered, exactly as designed.
For Financial Professionals

Are you a financial advisor
working with estate planning clients?

EFS provides a complete advisor platform — case design tools, client-ready materials, and dedicated support — to help you bring Traditional Enhanced Funding to your practice. We work alongside your existing approach, not in competition with it.

Request Advisor Access Advisor Login
Sample Case Library
Save and retrieve case designs across carriers and structures. Build a reference library that accelerates every future engagement.
Client Discussion Documents
Print-ready PDF narratives that walk clients through the estate projection, three-scenario comparison, and TEF structure — with a client signature block.
Multiple Financial Asset Comparison
Compare the estate impact of No Coverage, Self-Funded Life Insurance, and Traditional Enhanced Funding side by side — at ages 75, 85, and 95.
Advisor & Client Resources
Carrier illustration guides, compliance materials, and client-facing educational content — everything needed to support the conversation from first meeting to close.
Enhanced Funding Solutions LLC programs, strategies, solutions, and platforms are not intended to be investment advice or a recommendation of any stock or index. Purchasing life insurance can be volatile and involves risk, including loss of principal. Consider your individual circumstances prior to acquiring any life insurance. Life insurance policies are not an "investment" or "marketable securities product" — they are insurance products. The benefits and values shown are not guaranteed. The assumptions on which they are based are subject to change by the insurer. Actual results may be more or less favorable. All platforms are not valid unless accompanied by a complete insurance company illustration. The premium finance arrangement is offered by Enhanced Funding Solutions LLC. The insurance carrier is bound only by the terms of the life insurance contracts it issues.