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PremFinance.com Life Insurance Premium Financing Review

PremFinance.com has a lot to say about life insurance premium financing (see it on the many blocks of text on the home page). But it still does not answer the question on whether premium financing is actually free life insurance.

The website does tell its readers that a life insurance premium financing program allows you to take a life insurance policy without sacrificing on your liquidity and cash flow. By putting it early on in the home page, the website simply dashes the hopes of those on the look out for free life insurance, which I think is a good thing.

I have had to battle it out with some of my clients ever since those premium financing companies hyped premium financing as free insurance. My years of experience in the insurance business has painfully told me that there’s no such thing as free insurance, even if there was such a thing as a free lunch. The business just doesn’t work that way.

The most that premium financing companies have done is to make the premium payments more affordable to senior citizens with large estates. A premium financing company merely pays the insurance provider lump sum on a client’s life insurance policy. Freed from expensive premium payments, the client then pays the premium finance company the monthly installments on their policy. It is actually this simple math that makes premium finance a very attractive option for high-net worth individuals.

In case you didn’t know, a life insurance policy has a lot of uses when the insured person dies. Aside from paying for the burial expenses, it can also be used to pay for estate taxes, and for giving millions to those left behind.

I appreciate the website for putting in lots of information about its premium financing program. Interested individuals would also know right away if they are eligible for the program when they go to the page on program eligibility.