different portion of the contributions 111 on behalf of insured 110 to obtain the desired premium reduction and or death benefit differential between ilit 100 and insured 110 e g a 10 or 30 reduction even split of death benefit etc in addition the interest rate applicable on loans 131 may depend of the rate of return of life insurance company 120 provides on insurance policy 122 in other embodiments the rate applicable on the loans may be fixed based on actual costs of funds of premium lender 130 based on a market index such as libor or a combination of these or other known factors funding by premium lender 130 may be secured through a commercial paper conduit such as a bond market with the assignment of life insurance policy 122 acting as collateral for loans 131 one benefit of this arrangement is that the interest rate associated with the commercial paper conduit can be significantly less than that which may be obtained through another capital source often on the order of 100 basis points or more per year by reducing the amount of interest accrued premium lender 130 incurs less cost associated with loans 131 providing for the potential for more value to ilit 100 in other embodiments funding by lender.