NU Online News Service, Aug. 25, 2004, 12:15 p.m. EDT
Principal Financial Group Inc., Des Moines, Iowa, has agreed to work with Premium Funding Group L.L.C., New York, to help agents and customers who need assistance with premium financing arrangements.[@@]
Premium financing is a strategy that uses borrowed money to pay life insurance premiums. Most customers who use premium financing are wealthy individuals who need large amounts of life insurance to handle estate planning and estate tax liquidity needs, Premium Funding says.
Premium Funding says it can handle the legwork required to secure premium financing. Services include telephone consulting, premium financing illustrations, discussions with legal advisors, coordination of the issuing and execution of loan documents, perfection of collateral assignments and liens, and assistance for agents with servicing financing-related renewal premiums.
A typical prospect should have a net worth of at least $10 million, and the minimum total loan amount should be about $700,000, Premium Funding says.