Premium Financing

 Is the lending of funds to a person or company to cover the cost of an insurance premium. Premium finance loans are often provided by a third-party finance entity known as a premium financing company; however, insurance companies and brokerages occasionally provide premium financing services through premium finance platforms. Premium financing is mainly devoted to financing life insurance which differs from property and casualty insurance.

To finance a premium, the individual or company requesting insurance must sign a premium finance agreement with the premium finance company. The loan arrangement may last from one year to the life of the policy. The premium finance company then pays the insurance premium and bills the individual or company, usually in monthly installments, for the cost of the loan.

Typically, clients that engage in this transaction are age 29 to 75; with a net worth of $5MM or greater. Younger clients benefit in the current environment due to the advent of premium financed indexed universal life policies.



Watch this video and review:

Capital Advisory Group’s low-cost Key Employee Retention Strategy provides: Tax-free retirement income to your employees for life a multi million-dollar tax-free death benefit for your employees’ families No cost to your employees Little to no out-of-pocket cost for employers.  A ZERO-debt employee compensation strategy for employers – your balance sheet remains balanced.  You decide which employees get the benefit.  Vesting period is established by the company   Death benefit can be shared by both the employee and business, if desired. Our unique and proprietary strategy is designed to help companies retain KEY essential employees for the next 15 to 25 years.