Are you considering getting a new insurance policy but worried about the large single premium amount you must fork out upfront? Premium financing might be the answer to your concerns. What is premium financing? Premium financing is a type of insurance funding arrangement offered by financial institutions that allow you to be protected, but still enjoy financial flexibility. This is achieved by borrowing money to pay for your insurance premiums instead of paying them upfront with your own funds. This arrangement is usually offered when a large single premium is required. Typically, that involves either one of these two types of insurance policies:

• Universal Life (UL) or Single Premium Whole Life Policy
• Single Premium Annuity Plan

It is important to keep in mind that premium financing is a credit facility and involves money borrowing. This will incur interest payments at a variable rate and can come with various risks including the risk of losing your rights under the insurance policy....