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Premium financing life insurance

Premium financing life insurance is a unique life insurance premium financing program allowing individuals to increase the total value of their insurable net worth. Life insurance usually requires high premiums and premium financing plan can be an effective alternative for those who do not want to convert their assets into cash to fund their life insurance. It helps secure substantial sums of money in the form of the health insurance death benefit for your loved ones.

To qualify for premium financing life insurance you are expected to have a clear medical history, have insurable assets (the limit value is usually specified) and sometimes belong to a certain age group. If you are acknowledged eligible for premium financing, this insurance enables you to find a lender who will pay your life insurance premiums for a specified period, usually 2 years. This time period is known as the elimination period. If you live beyond the elimination period, you may sell your policy on the secondary market thus gaining on its face value.

The typical sources for premium payments are life insurance carriers and lending programs developed by them, some national banks, brokerage firms and lender brokers.