A premium financing deal includes the loaning of cash from a bank or hedge fund to pay the premiums of a freshly come from insurance coverage policy. The bulk of funded policies have a face quantity of over $1,000,000.
Elderly people who receive premium financing are generally in excellent health with a high net worth. Funding is an excellent monetary tool for seniors who require the protection of an insurance coverage for estate preparation or wealth transfer. It permits these health elders to acquire the policy at little to no expense expenses.
Non-recourse funding utilizes the policy as the only security requirement for the loan. Must the insured default on the loan the rights within the policy would go back to the lending institution. The loan provider constantly takes over the policy as in a non-recourse program.
If the protection is no longer required or desired the policy can be marketed and offered in the secondary insurance coverage market. If the policy is no longer required or desired and not salable the policy will go back to the lending institution.
Premium funding is the fastest growing sector of the secondary insurance coverage market. Numerous infant boomers are property abundant and money bad with a requirement for the defense offered by an insurance plan. All elders who suit this classification ought to call their monetary consultant or life settlement and premium financing broker to go over the alternatives offered to them.
A premium financing deal includes the loaning of cash from a bank or hedge fund to pay the premiums of a freshly come from insurance coverage policy. Funding is a terrific monetary tool for senior people who require the protection of an insurance coverage policy for estate preparation or wealth transfer. If the protection is no longer required or desired the policy can be marketed and offered in the secondary insurance coverage market. If the policy is no longer required or desired and not commercial the policy will go back to the lending institution.