Premium Finance

11 months ago
Insurance Glossary Team
1 minute

Plain English Definition: A method of paying insurance premiums through a third-party lender.

What Premium Finance really means for someone with an insurance policy

Premium financing allows you to pay large insurance premiums over time instead of upfront.

Premium Finance Real World Examples

  • You secure financing to pay a $50,000 life insurance premium in installments.
  • Businesses use premium financing to manage cash flow while keeping coverage active.
  • Individuals can avoid policy cancellation by financing overdue premiums.
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