Insurance Premium Lending
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Catalyst Private Credit > Insurance Premium Lending
An insurance premium can create a substantial cash requirement. Premium lending provides borrowed funds toward that obligation, subject to a review of the borrower, the policy, available security, and a workable repayment plan.
Fit with the insurer and the lender. The arrangement must fit the insurer's payment requirements and the lender's terms. Before proceeding, clarify who will pay the insurer, how the funds will move, and what documentation is required.
A separate obligation. Financing a premium creates a separate debt obligation and does not remove the need to maintain the policy. For insurance related transactions, timing is confirmed following the initial review.
- Premium amount and due date
- Policy type and ownership details
- Available illustration or statement
- Proposed security
- Repayment source
- Who will pay the insurer and how the funds will move
No. The use of borrowed funds and other tax requirements matter. Borrowing directly to acquire life insurance generally does not qualify for an interest deduction under the usual rule. A limited deduction for qualifying collateral insurance premiums has separate conditions. Obtain advice on the specific arrangement.
Yes. You can include your mortgage broker, insurance advisor, accountant, or lawyer in the discussion. Share their contact details with permission and explain their role in the transaction.
No. An inquiry begins the discussion. Funding requires approval, completed documentation, acceptable security where required, and satisfaction of the applicable conditions. Timing varies with the transaction and the parties involved.
Have a transaction in mind? Share a brief overview and the date you need funding.
Discuss Your FinancingHave 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.
