Benefits And Risks of Life Insurance Premium Finance

Life Insurance Premium finance is the safer way of purchasing life insurance, especially for high net worth individuals. It allows a company to borrow the cost of life insurance premiums. It usually occurs when the company has a very high premium that makes it necessary to borrow the amount in part or in whole to prevent reducing the company’s liquidity.

More often than not, traditional lenders don’t provide premium financing, and business owners need to look for specific premium financing providers to secure the loan.

Benefits of Premium Finance

When a company releases a large amount of payment, its owner must first consider whether the funds are needed for the daily operation of the company or for the expansion of the business. And in order to prevent liquidating some of the company’s assets or using key funds, financing is required.

More often than not, businesses depend on some type of loan to be sustainable. Premium financing is often a part of the debt cycle for company with high corporate owned life insurance costs.

A business owner can finance multiple policies via a single agreement that allows the owner to make a single insurance premium payment a month. In most cases, insurance companies accept premium financing and accept payment straight from the finance provider. When that is the case, the premium finance company will bill the business owner instead of the insurer.

Premium Financing of Non-Qualified Executive Bonus Plans

Premium financing can be used on non-qualified executive bonus plans, which are available for vital employees of any type of corporation. The employer has the discretion to select the workers to cover and the amount of the bonus. The business owner pays for the premiums on the policy, and the employee has to pay tax that’s equal to the premium amount.

Financing of 770 Accounts

A 770 account is a permanent life insurance policy that has been structured to maximize its cash value. By maximizing the total death benefit and cash value, you can maximize the cash value of the life insurance policy. More often than not, the cash value is tax-free and can be accessed at anytime.

770 accounts have a very competitive rate of return and can be used as collateral. But the premiums can be high. High net individuals or business owners can resort to financing in order to keep up with the premium payments without the need to liquefy assets.

As you can see, financing Life Insurance Premium can help individuals and companies that need to pay large amounts of premium. It allows them to stay liquid while providing insurance coverage to oneself or one’s employees. This is ideal for corporate owned life insurance programs as well as private banked owned life insurance policies.

Best Place To Compare Renters Insurance To Get The Best Rate

As a renter, you need renters insurance to protect your personal possessions from theft, vandalism, fire, and a host of other disasters. Here’s what renters insurance covers and the best place to compare renters insurance to get the best rate.

What Renters Insurance Covers

Think you don’t need renters insurance because you don’t own anything or because you’re covered by your landlord’s insurance? Think again! You landlord’s insurance only covers the physical building you live in. It does not protect …

* Your personal property

* You if someone is injured while visiting you

* You if you damage someone else’s property

You need renters insurance to provide this protection.

Can I Afford Renters Insurance?

Renters insurance is relatively inexpensive, usually only a couple hundred dollars a year. You can save even more by …

* Buying your renters insurance from the same company where you buy your auto insurance so you can get a multi-policy discount.

* Asking your insurer if you qualify for any discounts such as a non-smoker’s discount. Also check if your rental has safety features such as burglar alarms, smoke detectors, deadbolts, and window locks that qualify for discounts.

* Set your deductible as high as you can afford. The higher you set your deductible, the lower your premium will be.

Finding the Best Renters Insurance Rate

To find the best rate on renters insurance, begin by getting on the Internet and visiting an insurance comparison website. These websites allow you to get quotes from a number of companies at one time, so you can easily compare them.

All you do is fill out a simple questionnaire on the website. Then you’ll receive quotes for renters insurance from several A-rated insurance companies. It’s fast and easy – and it will save you money.

And if you have questions any time during this process, the best insurance comparison websites have an online chat feature, with insurance professionals on hand to answer your questions and help you get the best rate (see link below).