Inforce Certification - Module 18: Premium Financing

The Inforce Certification provides a comprehensive understanding of the key aspects of life insurance policies once they are in force. This certification covers a range of topics related to policy services, technology, billing, changes, loans, and more. Participants will gain knowledge of how to manage policies post-issue, including understanding policy updates, billing processes, and critical policy changes. The course also includes guidance on the use of technology, such as online portals and software products, and addresses specific policy-related actions like reinstatements, conversions, and surrenders. It will also explore the financial implications of policy loans, collateral assignments, and premium financing. This certification is essential for those involved in life insurance policy administration and advisory services.

Module Overview:

Module 18: Premium Financing 

This module covers premium financing, where loans are used to pay life insurance premiums, often for high-net-worth individuals or businesses. It explains loan structure, policy ownership, interest rates, repayment options, risks, and estate planning use and monitoring. It also defines a low point letter and details the information it should contain.

Learning Objectives

• Define premium financing and its typical users.

• Understand the loan structure and policy ownership in premium financing.

• Explain the repayment options and risks associated with premium financing.

• Describe how premium financing can be used for estate planning purposes.

• Recognize the importance of professional guidance when considering premium financing.

• Understand the importance of monitoring the performance of financed policies and the purpose of a low point letter.

• Identify the yearly requirements for financed policies.

COURSE CONTRIBUTORS