Insurance Premium Bridge — $200,000
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Catalyst Private Credit > Insurance Related Lending > Insurance Premium Bridge — $200,000
The situation
A policy owner has a $200,000 life insurance premium coming due before a proposed Immediate Financing Arrangement lender can release its advance.
Proposed structure
A temporary premium bridge would be considered only where the insurer and receiving IFA lender accept the borrowed source of premium funds, payment route, and repayment arrangement. Security and assignment priorities would be coordinated, with intended repayment from the subsequent IFA advance and an alternative repayment plan if that advance is delayed or unavailable.
Intended outcome
Address the premium payment timing gap while coordinating the transition to longer-term financing.
At a glance
- Amount: $200,000 (illustrative)
- Structure: temporary premium bridge, considered only where the insurer and receiving IFA lender accept the arrangement
- Repayment: intended from the subsequent IFA advance
- Contingency: an alternative repayment plan if the advance is delayed or unavailable
What the review considers
Factors assessed in a structure like this:
- Insurer acceptance of the borrowed source of premium funds and payment route
- The receiving IFA lender's acceptance of the repayment arrangement
- Security and assignment priorities
- Timing of the subsequent IFA advance
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Scenario:
Policy owner -
Status:
Illustrative example -
Category:
Insurance Related Lending -
Amount:
$200,000 -
Share:
ILLUSTRATIVE FINANCING SCENARIOS
How financing could be structured. Hypothetical examples only; not completed Catalyst Private Credit transactions.
Have a transaction in mind? Share a brief overview and the date you need funding, and we can begin by identifying the information needed for a review.
