Premium financing allows you to spread the cost of your annual insurance premium into manageable monthly payments. Instead of paying the full premium upfront, Peoples Premium Finance pay the insurance carrier on your behalf, and you repay us over the policy period – typically in 10 monthly installments. This approach helps protect your cash flow while ensuring your coverage remains fully in force.

Key Points to Cover with Your Clients

Purpose: Converts a large annual insurance premium into affordable monthly payments.

How It Works: The carrier is paid upfront, and you make predictable monthly payments over the policy term.

Cost Transparency: Interest and fees are fully disclosed upfront. Interest is often tax deductible (consult your tax advisor).

Balance Sheet Impact: Commonly structured as an off-balance-sheet obligation, and typically does not affect traditional borrowing visibility.

Security: The policy’s unearned premium serves as collateral.

Client Responsibility: Payments must be made on time to avoid policy cancellation.

Frequently Asked Questions About Premium Financing

Is this a loan?
Yes, it’s a loan specifically designed to finance commercial insurance premiums.

Will my insurance coverage change?
No, your coverage remains the same – only the payment method changes.

What happens if I cancel the policy mid-term?
Any unearned premium is applied to the remaining balance. There are no cancellation penalties.

Is this better than using a bank line of credit?
Often, yes. Premium financing preserves your bank credit lines for other business needs.

Can multiple policies be financed together?
Yes, multiple policies can be combined into a single, convenient monthly payment.

Tips for Confident Client Conversations

• Lead with the cash-flow and convenience benefits
• Be clear and transparent about interest and fees
• Set expectations around payment due dates
• Offer flexible options for down payments and terms
• Provide clear, easy-to-understand documentation

Let Peoples help you, help your clients, with tailored financing. Contact us today at peoplespf.com/contact-us or by calling 844.292.9090.

INSURANCE AND INVESTMENT PRODUCTS ARE: NOT FDIC INSURED; NOT GUARANTEED BY PEOPLES BANK; NOT A DEPOSIT; NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY;  SUBJECT TO RISK AND MAY LOSE VALUE.