DGIN
Premium Finance Life Insurance
Many financial planning techniques, such as estate planning or charitable giving, involve the
purchase of life insurance. However, for many individuals the required level of insurance
coverage, results in premiums that do not always conform to their liquidity or funding
objectives.
Life insurance premium financing has for many years been an attractive solution for funding
the premium payments on a life insurance policy. In a premium finance transaction, the
policy owner borrows part or all of the money to pay for the life insurance policy premium.
A well-designed premium finance structure allows clients to put the desired amount of life
insurance coverage into place, without significantly impacting their current investments or
general cash flow.
