How Premium Funding ( Financing ) Works?
Normally, there are a unit 2 parties to a life assurance policy; the insured (who is commonly the policy owner) and therefore the underwriter, and one monetary instrument; the life assurance policy. With premium funding, there may be up to four parties; the insured (who is commonly the borrower), the recipient (which may be Associate in Nursing entity), the underwriter, and a investor, and there are a unit 2 monetary instruments; the life assurance policy and a loan agreement.
The process is 2 steps: The recipient initial applies for a life assurance policy, indicating that the premiums are going to be supported. If the underwriter indicates that they're going to supply the policy with supported premiums, the recipient then applies for the loan. The policy may be any appropriate life assurance product, together with a second-to-die policy.
