Normally, there are 2 parties to a insurance policy; the insured (who is usually the policy owner) and also the non depository financial institution, and one monetary instrument; the insurance policy. With premium finance, there may be up to four parties; the insured (who is usually the borrower), the recipient (which may be associate degree entity), the non depository financial institution, and a investor, and there are 2 monetary instruments; the insurance policy and a loan agreement.
The process is in 2 steps of Premium finance: The recipient initial applies for a insurance policy, indicating that the premium are going to be supported. If the non depository financial institution indicates that they're going to supply the policy with sustain premiums, the beneficiary then apply for the Premium finance. The policy may be any appropriate insurance product, together with a second-to-die policy.
