Finance Your Life Insurance Premiums Through Our Financing Program

PremFinance is a unique life insurance premium financing program. It enables clients to obtain large face value life insurance policies, without impacting their liquidity, cash flow, or lifestyle. With only minimal risk, individuals who qualify for our Premium Finance Program can bequeth millions of dollars to their families in the form of a life insurance death benefit. Our Premium Finance Program involves no out of pocket expenses and no personal guarantees. If you qualify for the program it is a convenient way to provide money for your loved ones.

As a successful business owner, you have created substantial wealth over your lifetime. Even so, you may not have the liquidity available to purchase a high face value life insurance plan. Moreover, it may not be wise to sell assets for liquidity due to the tax liability that would be incurred.

With our unique, flexible and non-recourse Life Insurance Premium Financing Program, you can now create substantial liquidity for your family. These funds can be realized with no financial burden, no out of pocket expenses, minimal gift or estate taxes and no hidden costs or fees of any kind – all without tying up valuable cash in the form of insurance premiums. The loan is entirely non–recourse with no personal guarantees and only minimal collateral is necessary. Loaned premiums and accumulated interest will be deducted from the death benfit with all the substantial remaining value given directly to your family. The program offers a flexible financing facility that allows clients to choose from a variety of design options, including low interest rates and the ability to include advance payment options.

Take the opportunity to secure millions of dollars in benefits for your loved ones with only minimal risk, no out of pocket costs and no personal guarantees.

Using traditional or creative collateral, we secure the loan to finance the life insurance premiums. Example collaterals range from real estate to stock holdings. The interest rates are determined on the strength of the underlying collateral. Our life insurance premium finance loan repayments are flexible with no fees or prepayment penalties. At the end of the loan term, the insured can decide whether to continue coverage. Should the insured choose at that point to end the coverage then he has the option to hand over the policy to the lender as a full repayment of the premiums and interest.

If the insured passes away while the loan is still in force, the loan and interest will be deducted from the death benefit and 100% of the remaining payment will go directly to your family and beneficiaries.

All loans in our Life Insurance Premium Finance Program are given by a publicly traded, state chartered bank that is a member of the FDIC. Since the bank is subject to FDIC oversight it guarantees the stability of the Life Insurance Premium Finance Program. The Financing Bank has developed a new premium financing program which has been approved by many insurance carriers.

From : life-insurance-premium-finance.com

Premium Financing

A typical loan consists of a down payment usually 15 to 25 percent of the policy premium and subsequent payments that fully amortize the loan, in most cases over a period of 9 or 10 months.

Why Finance Insurance?
Hundreds of thousands of companies currently finance their property and casualty insurance premiums. Why? Because financing Insurance increases cash flow, acts as additional line of credit, and may improve financial ratios if the premium finance obligation is not reported as a liability. Premium Financing unlocks the true potential of your insurance asset.

What if my insurance company offers a free installment plan?
"Free" can be misleading. In fact you may do better if your insurance broker is able to negotiate a discount with the insurance company instead of the payment plan. A discount of 5% will normally offset the finance charge, helping you save costs on your total insurance package.

Can I pay off my loan earlier than the final due date?
Yes - most premium finance companies imposes a small fee or even no penalty for prepayments.

How does premium financing compare with bank financing?
Premium finance doesn't disturb existing credit arrangements. No collateral other that the down payment is required to obtain financing. The rates are comparable to rates in the short term market and you'll find they are extremely competitive. The higher the premium that is financed the lower the cost of funds.

Is the interest on my loan tax deductible?
Yes in most cases but you should consult with your accountant for full details.

Why would I want to finance my insurance?
Your insurance is an asset. Financing your insurance leverages the underlying value of that asset and pays for it as it is used. Premium finance improves cash flow and preserves your company's working capital.

Why do your rates change?
Like bank rates, Premium finance rates are tied to financial market fluctuations, up and down.

Are the rates always fixed?
Most clients prefer to lock in fixed rates but some premium finance companies offer both fixed and variable rates depending upon your preference.
from : holmanins.com

INSURANCE FINANCING

In this time of changing business requirements, consumer demands and insurance premium increases, the public requires new and innovative ways for the insurance buyer to afford insurance protection. By using the services of Insurance Financing, Inc., you can offer your clients a convenient and easy form of borrowing through low down payments and flexible payment plans.

You can finance any property and casualty insurance policy where a power of attorney can provide for the cancellation of that policy for nonpayment. It is essential that the financing be with an approved carrier (B or better with A.M. BEST) and that there be sufficient collateral at cancellation in order to secure the loan. Our quoting software can help ensure your success.

Fully Automated Quoting and Agreement Printing

Insurance Financing, Inc. will provide a fully automated quoting system that will calculate the entire finance agreement, with APR rates and monthly payments and print the contract on your printer. If you have multiple policies, just add them to the agreement. All financing will be correctly calculated as you go. You send the down payment to the company, have the insured sign the agreement and mail that to us. You are done. We will do all billing and follow-ups.

from : insurancefinancing.com

Insurance financing vehicles

• Protected Self-Insurance is an alternative risk financing mechanism in which an organization retains the mathematically calculated cost of risk within the organization and transfers the catastrophic risk with specific and aggregate limits to an insurer so the maximum total cost of the program is known. A properly designed and underwritten Protected Self-Insurance Program reduces and stabilizes the cost of insurance and provides valuable risk management information.
• Retrospectively Rated Insurance is a method of establishing a premium on large commercial accounts. The final premium is based on the insured's actual loss experience during the policy term, sometimes subject to a minimum and maximum premium, with the final premium determined by a formula. Under this plan, the current year's premium is based partially (or wholly) on the current year's losses, although the premium adjustments may take months or years beyond the current year's expiration date. The rating formula is guaranteed in the insurance contract. Formula: retrospective premium = converted loss + basic premium × tax multiplier. Numerous variations of this formula have been developed and are in use.
• Fraternal insurance is provided on a cooperative basis by fraternal benefit societies or other social organizations.^[11]
• Formal self insurance is the deliberate decision to pay for otherwise insurable losses out of one's own money. This can be done on a formal basis by establishing a separate fund into which funds are deposited on a periodic basis, or by simply forgoing the purchase of available insurance and paying out-of-pocket. Self insurance is usually used to pay for high-frequency, low-severity losses. Such losses, if covered by conventional insurance, mean having to pay a premium that includes loadings for the company's general expenses, cost of putting the policy on the books, acquisition expenses, premium taxes, and contingencies. While this is true for all insurance, for small, frequent losses the transaction costs may exceed the benefit of volatility reduction that insurance otherwise affords.
• No-fault insurance is a type of insurance policy (typically automobile insurance) where insureds are indemnified by their own insurer regardless of fault in the incident.
• Reinsurance is a type of insurance purchased by insurance companies or self-insured employers to protect against unexpected losses. Financial reinsurance is a form of reinsurance that is primarily used for capital management rather than to transfer insurance risk.
• Stop-loss insurance provides protection against catastrophic or unpredictable losses. It is purchased by organizations who do not want to assume 100% of the liability for losses arising from the plans. Under a stop-loss policy, the insurance company becomes liable for losses that exceed certain limits called deductibles.
• Social insurance can be many things to many people in many countries. But a summary of its essence is that it is a collection of insurance coverages (including components of life insurance, disability income insurance, unemployment insurance, health insurance, and others), plus retirement savings, that requires participation by all citizens. By forcing everyone in society to be a policyholder and pay premiums, it ensures that everyone can become a claimant when or if he/she needs to. Along the way this inevitably becomes related to other concepts such as the justice system and the welfare state.