There seems to be a new life insurance premium finance program announced every week

A week does not go by without one or more marketing calls informing us of yet another group wishing to throw cash into the lucrative premium finance space. These programs are coming from major financial institutions, hedge funds and even the family offices of the “super-rich”.

Life insurance premiums for seniors are often large and financing options make purchasing life insurance much more attractive. It is just another of the forces that are driving the senior life settlement and life insurance market ever higher.

There is a common theme to the new programs but they vary greatly in the individual program designs. In addition to the life insurance policy most require some other personal collateral or a small personal loan guarantee. These loan programs label themselves as hybrid premium finance plans.

Premium financing can be very advantageous and you should make sure that your life settlement broker or life insurance broker can provide you with a wide variety of financing options to choose from.

Explanation of the different types of premium finance available to seniors

We probably get more questions about premium finance than anything else. This is not surprising when you consider that premiums can cost seniors tens, even hundreds of thousands of dollars every year. If it was free everyone would get life insurance, so making it affordable is one of the most important duties of a life insurance brohker.

There are an amazing array of different premium finance programs from many different lenders and investors. However all these programs fall into 3 types explained in this article on premium finance. It will only take five minutes of your time to read but it will provide a wealth of information to help you discuss options with your broker.

Seniors have many finance alternatives to help with the cost of premiums.

There are two major obstacles that prevent seniors from buying the life insurance they need. First, the concern that they will be stuck with a sunk cost and a loss should they no longer need or be able to afford the coverage. The active secondary life settlement market has removed that concern for most seniors. Second, is the cost to purchase and maintain the policy. Annual premiums are usually 3%-4% of face value, a very large amount on a 7 figure policy.

Fortunately for seniors there are a large number of premium finance programs that could be available to them. Just like using a mortgage to buy a house you can use premium finance programs to buy life insurance. Understanding what premium finance programs are available and how they work is an important step to getting the best life insurance deal for your situation.