We do not offer premium finance programs, but we do recommend premium financing program if you want to take out a large insurance policy and give out millions to your loved ones when you’re already gone.

Premium financing is not a new type of insurance program, although it has had the moniker “free insurance” among life insurance marketers. But it is actually a financing program for life insurance policies. It is a loan that pays all the premiums of a large insurance policy. The insured person on the policy pays the premium financing company for the loan. 

Not all premium financing companies are created alike. Some companies bill you a monthly payment for the program. Others, meanwhile, deduct the sum of the loan plus accrued interests after the death of the insured person. Only a minimum collateral is required in this case.

Of all the premium financing companies on the market today, the one that gets our thumbs up is PREMFINANCE.

PREMFINANCE offers the best terms on the premium financing program thus far. It probably has the lowest net worth requirement for insured individuals at $4 million. In order to take out a premium financing loan, an applicant only needs to present a collateral that is equivalent to 25% of the total loan amount. Other companies require you to secure 100% of your loan. PREMFINANCE accepts cash, securities, commercial and residential real estate, or letter of credit as collateral.

PREMFINANCE does not have any hidden charges – you only pay for collateral and interest rates (equivalent to PRIME+1). The full death benefit is given to your beneficiaries net of the loan and the interest rates. 

Anyone who is concerned about the stability of the financing bank of PREMFINANCE should take peace in the fact that the financing bank is subject to FDIC oversight.