Insurance Premium Funding

1.   One 80 Financial Services Pty Ltd  May 24 , 2017  Benefits and Risks of Life Insurance  Premium Funding  Life ​Insurance Premium Funding is the secure way of buying life insurance, specifically for high net worth individuals. It permits a company to borrow the cost of life insurance premiums. It generally               happens when the company has a very high premium that makes it essential to borrow the amount in                 part or in whole to stop reducing the company's liquidity.                                                                         More often than not, traditional lenders don't offer premium financing, and business owners want to               look for specific premium financing suppliers to secure the loan.                  Benefits of Insurance Premium Funding  When a company issues a big amount of payment, its proprietor must first consider whether the funds                   are needed for the daily operation of the company or for the progress of the business and in order to                 stop liquidating some of the company's assets or using key funds, financing is essential.                                            1   

2.       More often than not, businesses depend on some type of loan to be supportable. Premium funding is                 generally a constituent of the debt cycle for the firm with high corporate possessed life insurance                   prices.                                  A business proprietor can finance many policies via a single agreement that permits the owner to               make a single insurance premium payment a month. In most of the cases, insurance companies               accept premium financing as well as accept payment straight from the finance provider. Whenever               this is a case, the premium finance firm will bill the business owner rather than the insurer.                                                  Premium Funding of Non - Qualified Executive  Premium financing also can be used on non-qualified executive bonus strategies, which are available               for energetic employees of any type of corporation. The employer has the choice to select the workers               to cover and the amount of the bonus. The business owner pays for the premiums on the policy as                   well as the employee has to pay the tax that's equal to the premium amount.                                                        770 Accounts Funding  A 770 account is a stable life insurance policy that has been planned to maximise its cash value.                   Through maximising the total death benefit and cash value, you can maximise the cash value of the               life insurance policy. More often than not, the cash price is tax-free as well as can be accessed at any                 time.                                                                770 accounts have a very reasonable rate of return and can be used as collateral but because of these,                   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 necessity to liquefy assets. As you can see, life               insurance premium funding can support individuals and companies that need to pay big amounts of           premium. It permits them to stay liquid while providing insurance coverage to oneself or one's                 employees. This is perfect for corporate owned life insurance programs and private banked owned life                 insurance policies.                                                                                                            For more information about Insurance Premium Funding ​Contact Us - One 80 Financial Services​​ .    2