Know about PREMIUM FINANCing

The term “Premium Financing” refers to the lending of funds to an individual person or to a company to cover for the cost of an insurance premium.

These funds are often lent by a third party company called the Premium Financing Company.

In several cases insurance companies or other brokerages also assist in the lending process.

Rate Flex makes this process easy, by joining Brokers and PF companies together and facilitating a smooth quote to application process.

Premium Financing is used instead of rigid carrier instalment plans or if the only option is premium payment in full.

By an insured signing a finance agreement, they are agreeing to have the Premium Finance Company advance the entire annual premium to the insurance company on their behalf.

The insured is then provided a monthly payment plan from the Premium Finance Company that includes both the premium and interest payments.