Premium Financing


The other significant benefit of Universal Life Insurance is the capabilities to aid owners reduce their premium expenditure down to the smallest amount. A maximum of 70% of the agreed premium is acceptable for the owner’s loan. For example, if a male prospective client who is above 40 years of age has an insurance coverage of US$5 million and a premium of US$1 million plus a financed premium of US$700,000 and upfront premium of US$300,000, then that means that he would have a US$5 million covered already in the space given and the owner would therefore be expected to only pay the upfront US$300,000 together with the financing charges for the remaining US$700,000.