Premium Finance

This is a payment plan that starts with the insured to paying a portion of the premium when coverage takes effect (usually 1/6) and then a monthly payment plan over 10 months for the balance of the policy term. This method sets up a pre-payment of one month in advance and guarantees that the insurer has time on risk in case of non payment cancellation.

These payment plans are usually available from the insurer and their agent or broker. If an insured has a poor payment history then this option may be denied.

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