Frequently Answered Questions (FAQs)

Premium Finance for Life Insurance
Frequently Asked Questions (FAQs)
Premium Financing for Life Insurance FAQ | Capital for Life

Read our FAQs (Frequently Asked Questions) on life insurance premium financing and discover new ways to pay for your life policy.

Single Pay | Life Insurance Premium Financing
  • What is life insurance premium finance?

    Life insurance premium financing is a loan made from a bank or premium finance company to fund the lump-sum premium payable on a life insurance policy.

    Premium finance life insurance loans typically cover up to 90% of the policy's cash surrender value. The loan interest rate is usually variable and renewed on an annual basis. Once the premium finance loan is in place, the high net worth individual or company taking out the loan typically pays interest-only to the finance company or bank providing the loan.

    Financing the premium of a life policy is popular and attractive to high net worth individuals because a minimal amount of upfront capital is needed to buy a policy. This means capital can remain invested or used for other investments with the aim of generating higher returns than the interest being paid on the premium finance loan.

  • How do I get a premium finance life insurance quote?

    Premium finance life insurance quotes are available from Capital for Life. Email us at or visit our LinkedIn page and follow us for the latest loan rates and updates.

  • How do I apply for premium finance loan?

    Apply for premium financing to buy a life insurance policy by emailing us at

  • What is the minimum loan size?

    There is a minimum loan size of $500,000.

  • What is the maximum loan size?

    There is no maximum loan size for our premium financing service.

  • What type of premium finance loans do you offer?

    Our premium financing loan service offers different types of loans for high net worth individuals buying life insurance, including:

    • Variable-rate
    • Different loan terms
    • Multi-currency

    Our premium financing loans service is available to high net worth clients through life insurance brokers, private banks, trust companies and wealth managers who work with Capital for Life. For the latest finance rates, speak to your professional introducer.

  • Are loans interest-only?

    Yes, all our premium finance loans for buying a life policy are interest-only.

  • What is the premium financing interest rate?

    You can find our latest premium, finance rates on the Capital for Life Linkedin page or you can email us at

  • Can I finance a new life insurance policy?

    Yes. Premium finance is available for new life insurance policies taken out through Capital for Life.

  • Can I refinance an existing life insurance policy?

    Yes, you can refinance an existing life insurance policy or arrange a loan for a life policy with no existing finance.

  • Which life insurance policies can you finance?

    Capital for Life arranges finance for life insurance policies from the largest life insurance companies globally.

    Contact us at with details of the policy that you want to finance and we’ll be in touch.

  • Can loan interest be added to the loan amount?

    No, the interest cannot be accumulated against the policy. Interest is payable in line with the terms of the premium finance loan and cannot be taken from the cash value of the life insurance policy.

  • What lending currencies are available?

    Premium finance loans for life insurance policies are typically offered in US$. All interest payments must be made in US$ and repayment of capital (principal) will be made in US$.

    However, loans in other currencies can also be arranged including Singapore Dollars, Hong Kong Dollars, British Pounds and Swiss Francs.

  • What fees do I pay for the loan?

    Some premium finance loans have an arrangement fee which is payable up front. This varies and depends upon the type of loan you are taking out. Capital for Life will inform you of any loan arrangement fee.

  • Can I have more than one premium finance loan?

    Yes, you can have more than one loan. Each loan facility will be subject to financial underwriting and acceptance.

  • Do I have to re-qualify for the loan each year?

    The premium financing loan is a rolling facility which is typically renewed each year. In some cases, there is the option to transfer to a new rate before the annual review.

  • What ongoing responsibilities does the borrower have?

    The borrower is responsible for making loan interest payments on time and maintaining the collateral requirements.

  • Who will monitor the collateral requirements of my life policy and loan?

    Capital for Life and its banking partners will monitor the collateral requirements for loan arrangements.

  • Can underwriting for the life policy and premium finance loan be done together?

    Yes, underwriting for your life insurance policy and a premium finance loan can be carried out at the same time. However, Capital for Life requires a valid and current offer of life insurance in order to execute a loan arrangment.

  • Is there a penalty for repaying my premium finance loan arrangement?

    No, there is typically no penalty or fee for repaying your premium financing loan early.

  • What is a life insurance premium finance company?

    A life insurance premium finance company is a lender of money to wealthy individuals or companies buying a life insurance contract. The premium finance company enters into a lending agreement, typically with the life insured of the policy to fund, in whole, or part, the premium of a life policy.

  • What is a life insurance premium financing agreement?

    A life Insurance premium finance agreement is a contract in which a lender agrees to pay the premium of a life insurance policy taken out on a life insured individual.

    In return, the borrower agrees to pay interest on the loan for the stated duration of the agreeement. The borrower also agrees to repay the loaned capital (principle) at the end of the term in order to conclude the finance agreement.

  • How does a life insurance premium finance company accept payments?

    A life insurance premium finance company can accept interest payments on a monthly, quarterly, half yearly or yearly basis. Repayment of the outstanding loan (capital) is usually made at the end of the term. Both interest payments and capital repayments are usually made by wire transfer from the borrower's bank account.

Multi Pay | Life Insurance Financing

  • What is multi-pay life insurance?

    Multi pay life insurance allows you to pay premiums for a limited period while the life cover you are buying is designed to stay in place the whole of your life. For example, you may choose to pay your life insurance premiums over 5, 10 or 15 years, but your cover continues for the rest of your life. Your premiums are level for the duration of the multi-pay period. Multi paying your life insurance is also known as limited pay.

  • How do I get a multi-pay life insurance quote?

    Multi-pay life insurance quotes are available by emailing us at

Life Pay | Life Insurance Financing

  • What is life pay life insurance?

    Life pay is another term for the premium payment you make to a life insurance company for your life policy. The insurance premium can usually be made monthly or annually and the payment is made for the rest of your life.

  • How do I get a life pay quote?

    Life-pay life insurance quotes are available by emailing us at

Let's talk

Still have questions?
Ask us anything. Our goal is to help you understand and then decide which premium finance loan is the suitable for you.

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