5 Risks Of Life Insurance Premium Financing And How To Mitigate Them?
In simple terms, this involves borrowing money to pay for a life insurance policy. This strategy can be beneficial for high-net-worth individuals who need substantial coverage but prefer not to tie up their capital in premiums. One of the primary risks with life insurance premiums is the interest rate on the loan. If the interest rates rise, your monthly payments could become significantly higher. This increase could strain your finances and make it challenging to keep up with the loan payments.