3 Things to Consider When Choosing A Premium Finance Provider

By Sean Jagroop

Premium financing offers an ideal opportunity for companies or individuals looking to pay off an insurance premium over time versus up front. Operating similarly to a bank or credit union, the premium financing solutions provider can loan money on the premium that can be paid back over an agreed-upon period of time.

Premium financing offers a variety of benefits for the consumer. It allows them to fund existing premiums without liquidating assets. It lessens the impact on their cash flow, and it can help them with general estate planning. Although there is a need for premium financing, customers still have a choice to make when identifying an insurance agent who can facilitate the best premium financing options available. To set yourself apart, make sure to partner with a premium financing provider that hits this three-step checklist.

1. Live customer service

Premium financing can be a confusing process. Partnering with a provider that ensures a live representative is always on the other end of the line when questions arise is key. Make sure your partner offers 24/7 online reference tools and after-hours customer payment options.

2. Automated quote integration

Partner with a provider that also offers automated quote integration, allowing them to pull the best rates whenever prospective customers have inquiries.

3. Flexible term options

While some premium financing companies set strict limitations on customers to mitigate default risk, offering flexible term options can go a long way. Show customers you understand their needs by partnering with a provider that offers them a customized payment plan.

Premium financing options offer loads of additional value. For less than customers would have to pay a traditional lender such as a bank or credit union, they instead get to work with a provider that has their best interest in mind. Partnering with the right premium financing provider is a great way to go the extra mile for your customers.

Sean Jagroop is director of premium financing for Fortegra Financial Corp. Sean may be contacted at [email protected].

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