There are a number of benefits to financing insurance premiums. These include:

• Eliminates the requirement for a large up-front payment to an insurance company.

• Multiple insurance policies can be attached to a single premium finance contract, allowing for a single payment plan to cover all insurance coverage.

• Premium financing is often transparent to the individual or company. Brokers transmit the completed premium finance agreement to the premium finance company, and the policy holder is billed as they would be for any other typical insurance policy.

• Allows for clients to obtain needed coverage without liquidating other assets.

• The main benefit in premium financing is avoiding the opportunity cost when paying out of pocket. By using other people's money (leveraging a lender's capital), insured's can retain their precious capital.