Premium Finance

Life Insurance premium financing involves taking out a third-party loan to pay for a policy’s premiums. As with other loans, the lender charges interest, and the borrower (the insured, in this case) repays the loan in regular installments until the debt is satisfied or the insured passes away, in which case the balance is typically paid off with insurance proceeds.This strategy may be useful to high net worth individuals (HNWIs) who don’t want to liquidate assets to pay for costly life insurance premiums outright.