ID Trends Summer 2022 - Page 36

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Premium Finance Trends

Lessons learned in premium finance

Life Insurance can solve many critical needs for both individual and business customers — offering the unique ability to provide income or capital exactly when it is needed most . Three decades of experience in the premium financing sector have provided a wealth of insights into the strategic and financial considerations that go into developing and deploying complex life insurance funding approaches .
A funding source
Funding a life insurance policy can present challenges — particularly where the funded premiums are substantial . The concern for many individual and business clients is that much of their capital often is deployed in their business , investments , etc . It is not generally parked in a checking account or other highly liquid account . The external source of capital that a premium finance loan provides can be an effective solution where use of existing capital does not make economic sense . Lessons learned continued on page 38
Partnering with experienced professionals is often the best way to avoid having the client end up with a design not worth the ink it ’ s printed on .