Life Insurance Premium Financing
Life Insurance Premium Financing is continually linked together with Life Settlements. We figured it would be a good time to provide a little bit of information about this product.
Life insurance premium financing is a tool, offered from a premium inance company, that an individual with substantial assets uses to cover he upfront costs and premium payments on a life insurance policy. Individuals often choose this course if they require a large amount of life nsurance and do not want to pay the out-of-pocket costs. Premium financing makes the most sense when an individual wishes not to liquidate high yielding assets to cover the costs of a life insurance plan.
Different type of premium financing include recourse and non-recourse versions, as well as hybrid products. We are seeing that no-recourse premium financing is becoming a very limited option.
Most premium financing contracts require at least $1 million in net worth and $50,000 to $100,000 a year in net income. Most premium finance companies will require at least $1 million in coverage. The person insured under the life insurance policy has the option after 24 months to pay off the loan and maintain the insurance policy or they can retire the policy in a life insurance settlement.
Call 1-888-973-8377 to speak with a Life Settlement Specialist about Life Insurance Premium Financing.
