Protecting Your Assets and Growing Your Wealth with Premium Financing

Protecting Your Assets and Growing Your Wealth with Premium Financing

Do you currently own a business or do you have a substantial net worth and are looking for a way to protect and continue to grow your wealth? Premium financing could be one financial strategy that can help you reach your financial goals while providing you insurance coverage at the same time, and it involves obtaining a loan in order to help you pay for life insurance premiums. If you are interested in learning more about the advantages of premium financing in San Diego, California, Windfall Insurance Services Inc. is here to help. Read on to learn if this financial strategy could benefit you.

Premium Financing: Essential Information

scott-graham-5fNmWej4tAA-unsplash (1)When you purchase insurance coverage, you are required to pay a premium, which is essentially the cost of owning the policy, and this cost is separate from the deductible that must be paid when making a claim. When a business or an individual opts for premium financing, they borrow money from a third party to help pay for an insurance policy’s premiums if they need additional help to afford insurance costs. This option is similar to a loan because rather than making direct payments to an insurance company, you would work with a premium finance company instead, which would then help cover the total cost that is due to the insurance company. The borrower would then make payments to the premium financing company rather than the insurance company. Premium financing allows a policyholder to divide the premium payments over time instead of having to pay for the entire premium cost up front. Premium financing can be used for several types of insurance, such as commercial insurance, life insurance, etc.

Reasons For Premium Financing

Premium financing can be advantageous for many clients in certain situations, although it may not be the best option for others. In the event that a business or individual needs a large amount of insurance to protect an investment, build up wealth, or for estate planning, and they do not want to utilize their savings for the insurance premium payments, premium financing allows borrowers to spread out payments over time and helps them avoid paying a large sum up front. This frees up assets to help afford other investments and also helps policyholders with multiple insurance policies to consolidate their payments. It is important to remember that insurance premium financing is a loan, therefore it will accrue interest and will be required to be paid back, increasing the cost of the premium, and if interest rates increase, prices will get higher, in which case it would not financially make sense to finance an insurance policy.

If you have questions about the different types of insurance policies available to you in San Diego, California, contact Windfall Insurance Services Inc. today for a consultation.

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Windfall Insurance Services Inc
2335 Roll Dr #6

San Diego, CA 92154

Number:
(619) 661-0505
Toll Free:
(866) 610-0616

Hours:
MON-FRI 9AM - 6PM