The program
How it works
A jumbo mortgage, a funded life insurance policy and a bank loan that finances part of its premiums, planned together.
In one paragraph
You buy a home with a mortgage that is interest only for 15 years. At the same closing you fund a life insurance policy with about 30% of the home’s price, and a bank finances further premiums. The policy has 15 years to build. From year 16 it is designed to provide the cash that pays the mortgage, and to keep providing cash after the mortgage is repaid in year 30.
What changes is what pays the second half of your mortgage: capital you commit at the start, in place of income you would have to earn later.
Program terms
At a glance
Summary · October 2026
- Program
- The Family Office Mortgage
- What it is
- A jumbo home mortgage coordinated with a separately funded indexed universal life insurance policy and bank financing of part of the premiums
- Used for
- Primary residences, second homes and homes for family members
- Capital at closing
- About 50% of the price: 20% as the down payment, 30% to the policy
- The mortgage
- 30-year jumbo loan from your lender or one we introduce. Interest only for 15 years, then principal and interest for 15
- The policy
- Indexed universal life from an insurance carrier, on your life or that of a spouse or adult child. Subject to medical and financial underwriting
- The financing
- A bank loan for part of the premiums, floating rate, with collateral, planned to be repaid around year 15
- Years 1 to 15
- You pay the mortgage interest
- Years 16 to 30
- Projected policy cash is designed to pay the mortgage, with margin above the scheduled payment
- After year 30
- The mortgage is repaid. Projected policy cash continues through the illustrated period
- Who qualifies
- Households with $5M or more in assets and $500,000 or more in income, with a long horizon and an insurable person
- Where
- Nationwide, subject to the lender, carrier and bank available in your state
A summary, not an offer to lend or insure. The terms of the mortgage, the policy and the financing are set by the lender, the carrier and the bank in their own documents, after their own approvals.
01At purchase
Where the money goes.
For the reference case, a $4,000,000 home.
YouThe seller
$800,000
Down payment · 20% of the price
Your lenderThe seller
$3,200,000
Mortgage · 80% of the price
YouThe insurance carrier
$1,200,000
Policy contribution · 30% of the price
A bankThe insurance carrier
Per the financing
Financed premiums
The bank’s money funds insurance premiums. How much it lends, and on what terms, is set in the financing agreement for your case.
02From purchase to the years beyond
Year by year
01At purchase
Two transactions close together.
You
You put $800,000 down and contribute $1,200,000 to the policy: $2,000,000 in all, half the price of the home.
The structure
A lender funds a $3,200,000 mortgage. A carrier issues the policy. A bank agrees to finance further premiums, secured by the policy and, where called for, by assets you pledge.
02Years 1 to 15
You pay interest. The policy builds.
You
$16,266.67 a month, interest only. A traditional loan would cost $19,391.83. The reference case assumes no further premiums or financing interest from you in these years.
The structure
The policy is credited interest under its index formula, less its charges. The bank loan accrues. Each year the policy values, the loan and the collateral are reviewed against the plan.
03Year 15
The bank is repaid.
You
Nothing further is assumed from you in the reference case. The annual reviews before this point are there to keep the policy on its plan.
The structure
The premium-finance loan, with its accumulated interest, is repaid using policy value. From here the only debts are the mortgage and any loans against the policy itself.
04Years 16 to 30
The policy is designed to pay the mortgage.
You
The mortgage payment rises to $27,176.61 a month because principal is now being repaid. Projected policy cash of $370,000 a year is designed to cover the $326,119 due, leaving $43,881 a year.
The structure
Cash is drawn from the policy as loans or withdrawals and applied to the mortgage. The plan is built with margin between what is projected and what is due.
05Year 31 onward
The home is paid for. The policy continues.
You
The mortgage is gone. Projected policy cash of $370,000 a year continues through year 62 in the reference case.
The structure
At the insured’s death the policy pays its death benefit, less any loans against it, to your beneficiaries. The reference case quotes $2,600,000 remaining; the net figure comes from the actual contract.
03The borrowing
The three debts
Each has its own lender, its own schedule and its own planned end.
The mortgage
- What it finances
- The part of the purchase you do not pay in cash.
- How it is handled
- $3,200,000 at purchase. Interest only for 15 years, then principal and interest for 15.
The premium-finance loan
- What it finances
- Insurance premiums paid to the carrier.
- How it is handled
- A bank loan, planned to be repaid from policy value around year 15. Floating rate, secured by the policy while it is outstanding.
Policy loans
- What it finances
- Cash drawn from the policy’s own value.
- How it is handled
- Used to repay the bank and to provide the later cash. They are settled from the death benefit.
- You
- Buyer, mortgage borrower and, usually, owner of the policy. You or your trust decide who the beneficiaries are.
- The insured
- The person whose life the policy covers. Often a spouse or an adult child rather than the buyer. A younger insured gives the policy a longer runway.
- The mortgage lender
- Your lender or one we introduce. It makes an interest-only jumbo loan, repaid on its own schedule.
- The insurance carrier
- Issues the indexed universal life policy and credits it under the contract’s terms. Its illustration for the person insured sets the figures in your proposal.
- The premium-finance bank
- Lends part of the premiums for roughly fifteen years at a floating rate, secured by the policy and, where called for, by assets you pledge.
- Kent Chesley and Paul Finestone
- Coordinate the purchase, the policy design and the financing so that the contracts fit one another and your advisors can review them together.
By qualification
Find out if it is open to you.
Three ranges tell you where you stand against the published criteria. If you meet them, Kent Chesley will speak with you personally.
Prefer to talk? Call him directly at 949-293-8686.