Premium Financing is a policy-funding strategy that will appeal to a
specific segment of your client base.

Premium Finance

Help your affluent clients increase their internal rate of return while securing the insurance they need with premium financing!

What is premium financing? Good question! Premium Financing is a policy-funding strategy that will appeal to affluent clients who want life insurance, but who would prefer not to liquidate their assets. Plus, it may prove highly lucrative for you when you sell premium finance!

Why Brokers Alliance? Brokers Alliance is uniquely positioned as an experienced brokerage working with only the most trusted carriers and lenders in the market.  These powerful relationships mean that we can find the best solutions for your clients needs.  Additionally, our point of sale experts are here with capital and sales support to make the process as smooth as possible for you and your client.

Useful applications for Premium Financing include:

  • Estate Planning
  • Retirement Planning
  • Charitable Giving
  • Strategic Business Planning

Learn more about premium finance in this valuable article or call us to talk to a Premium Financing Specialist today!

Frequently Asked Questions

What is premium finance life insurance?

Premium finance is a planning strategy in which a third-party lender pays the premiums on a large permanent life insurance policy, and the client repays the loan rather than paying the premiums out of pocket. It lets a high-net-worth client fund substantial coverage while keeping capital invested elsewhere.

Which clients are a fit for premium finance?

Premium finance fits a narrow segment: high-net-worth clients with a genuine need for large permanent coverage, the liquidity to post collateral, and the sophistication to understand interest-rate and collateral risk. It is an advanced-planning tool, not a mass-market sale.

What are the main risks an agent should disclose?

The principal risks are rising loan interest rates, the need to post and maintain collateral, and policy performance that must keep pace with loan costs. A responsible case models conservative assumptions and a clear exit strategy, which is why these cases should be designed with specialist support.

How does Brokers Alliance support a premium finance case?

Brokers Alliance provides advanced-planning and case-design support to structure, illustrate, and stress-test a premium finance arrangement with the right carrier and lender. There is no fee to the agent to access this support; Brokers Alliance is compensated by the carrier when the case issues.