An Individual Financing Arrangement (IFA) allows corporate owners and high-net-worth clients to secure loans using the cash value of exempt insurance policies as collateral. Clients must have sufficient cash surrender value and qualify for both insurance and loans. The strategy offers tax efficiency, particularly for those in high tax brackets. However, risks include interest rate fluctuations and potential tax implications if the policy is surrendered. Discussions about IFAs often lead to general insurance purchases rather than leveraging loans.