Premium Finance Senior Life Settlements

Background information about Premium Financing and Senior Settlements

The purchase of a life insurance policy and the method of financing the purchase and preservation of a life insurance policy are separate and distinct transactions from any other policy transaction, including the potential sale of a life insurance policy in the secondary life insurance market. A legitimate premium finance loan does not result in the purchase of a life insurance policy in violation of the insurable interest principle, or a life settlement transaction and accordingly must bear the characteristics and be respected as a loan. Life insurance premium finance loans are free-standing and independent loans. There must be no requirement that a premium finance loan be part of a life settlement transaction. Life insurance premium financing has served the interests of purchasers of life insurance, as well as life insurers and their agents, for more than 100 years, long before the emergence of the concept of so-called Stranger-Initiated Life Insurance ("SILI") or Stranger-Owned Life Insurance ("STOLI"), which are terms without commonly understood meanings used to describe illegitimate premium finance or life settlement transactions.