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Understanding the Premium Financing Process


If you have a neeed for high-valie permanent life insurance, and would prefer using your cash flow for other purposes, PremiumLife PlusTM premium financing may be an option for you.

Heres how it works: PremiumLife PlusTM requires medical and financial underwriting, aprocess that can be accelerated by collecting documents and identifing collaterial as soon as possible.

Identify sources of collateral. Acceptable collateral includes: Cash-equivalent assets, Certificates of deposit, Annuities, Taxable investnet accounts, Bank letter of credit, Existing cash value life insurance products.

Lenders require: Two years ofP&L and other cororate financial statements. Two years of corporate and personal tax returns. Personal financial statements. Investment account statements to varify net worth.

Begin medical underwriting. Medical underwriting involves an insurance medicl exam.

Once you have passed medical underwriting, financial underwriting begins.

Collaterial is confirmed, youe loan is approved by a PremiumLife PlusTM lender and your life insurance policy is in force. Congratulations!

On each policy anniversary, the lender calculates how much collateral is needed to back the premium financing loan.

You make interst payments to the lender.