Coventry Capital Inc. is offering to lend life insurance policy owners the money they need to keep their existing coverage.
Coventry, Fort Washington, Pa., would let policy owners finance their premiums using the market value of the policy itself as collateral. The plan would let policyholders keep coverage they could no longer afford or would have to cash in, the company says.
Typically, premium financing has been available only for purchasing new coverage, Coventry says. Its new approach, which it calls Premium Finance Plus, lets policy owners fund existing coverage without putting up other assets as collateral, the company notes.