A sophisticated strategy for business owners and incorporated professionals who want the best of both worlds: insurance protection and access to capital.

What Is an Immediate Financing Arrangement (IFA)?

An Immediate Financing Arrangement (IFA) is an advanced wealth strategy that allows corporations to purchase permanent life insurance while immediately borrowing back the majority of the premium from a bank.
This means your retained earnings continue working for you—funding growth, investments, and opportunities—while you secure long-term estate value and potential tax advantages.

You get:

• Permanent life insurance protection

• Immediate access to capital

• Potential interest deductibility

• Tax-efficient estate transfer (via the Capital Dividend Account)

This strategy is ideal for business owners who want to grow today while protecting tomorrow.

Who Is an IFA For?

An IFA is best suited for corporations or incorporated professionals with:

• Strong, predictable cash flow

• Excess retained earnings

• A desire for tax-efficient wealth transfer

• A need for liquidity for business or investment opportunities

• The ability to fund annual premiums (often $100,000+)

If you’re scaling, reinvesting, or planning your estate, an IFA may be one of the most powerful tools available to you.

How an IFA Works — In Simple Terms

1. Your corporation purchases a permanent life insurance policy (Whole Life).

3. The policy is assigned as collateral to a lending institution.

5. The bank lends back most of the premium—often up to 100% of the policy’s cash value.

7. You use the borrowed funds for investment, expansion, or working capital needs.

9. At death, the insurance benefit repays the loan, and the remaining tax-free proceeds flow into your Capital Dividend Account for distribution to shareholders.
   
   

The result: you keep your liquidity today while building tax-efficient wealth for the future.

Why Business Owners Choose IFAs

✔ Preserve Liquidity

Don’t lock up capital in premiums—borrow it back and keep cash flowing.

✔ Tax Efficiency

Interest may be deductible when loan proceeds are used for income-producing purposes.

✔ Enhanced Wealth Transfer

Insurance proceeds create tax-free credits to the CDA—maximizing value for heirs.

✔ Strategic Leverage

Turn retained earnings into a highly efficient, multi-benefit asset.

✔ Long-Term Protection

Coverage for key individuals or owners supports business continuity.

Real-World Examples of IFAs in Action

1. Liquidity Without Sacrifice

A corporation invests in a $5M policy with $250,000 annual premiums. The bank lends back the cash value each year, keeping operations fully funded while long-term estate value grows.

2. Family Business Succession

A family-owned company uses an IFA to equalize inheritances and secure $3M in estate liquidity—without selling assets.

3. Investment Opportunity

A real estate company accesses $300,000 annually via IFA loans to acquire a commercial property—without liquidating its portfolio.

4. Working Capital Stability

A medical corporation funds staff expansion and equipment upgrades each year using IFA-generated liquidity, while policy cash value continues growing.

5. Estate Planning + Expansion Capital

A manufacturing owner unlocks 100% of premium value to finance a second facility—while securing a $6M estate transfer plan.

Why Work With Zada

An IFA is powerful—but only when designed correctly.

At Zada, we specialize in advanced insurance lending strategies and ensure:

• The right policy structure

• The right lender relationship

• The right tax-efficient planning

• A seamless and fast implementation process

Your business is unique. Your IFA strategy should be too.