What does "premium financing" allow insured individuals to do?

Premium financing allows insured individuals to borrow money specifically for the purpose of paying their insurance premiums. This arrangement enables individuals to secure the necessary funds to maintain their insurance coverage without depleting their personal cash resources. It can be particularly advantageous for high-net-worth individuals or businesses that may wish to preserve liquidity for other investments or expenditures while still ensuring that they have active insurance policies in place.

The ability to finance premiums helps to alleviate cash flow issues that might arise from making large premium payments all at once, allowing individuals or businesses to manage their financial commitments more effectively.