Premium finance in Canada is definitely not a new notion. In Canada, premium insurance distribution landscape continues to undergo changes every year. Non- recourse premium finance is presently one of the products which are in high demand in the life insurance market. It is quite popular with high net worth individuals who want the additional life coverage for estate planning.
Summary- Premium financing is a process wherein wealthy individuals, having a high net worth, are being approached to purchase life insurance by borrowing the capital to pay premiums. Premium financing is basically a good idea for the clients who wish to continue being liquid while escalating their portfolio with safer, more unwavering investments.
