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Premium Finance Lenders in the Insurance Industry: How Do They Work?

By now you’ve likely heard of Premium Financing. How do life insurance premium finance lenders choose which policies to fund?

This strategy utilizes leverage to turn your life insurance policy into an asset, rather than just a perceived expense. 

While this type of policy is available nationwide, it’s true that not just anyone can utilize PFLI (premium financed life insurance) as an asset. 

There are qualifications that must be met. Our lenders who specialize in financing for PFLI, sometimes referred to as LIRP, require candidates to meet these requirements:

  1. Minimum Client Contribution of $35,000 Per Year

  2. Minimum Verifiable Annual Income: $200,000

  3. Duration Of Client Contributions: 5, 7 or 10 Years

  4. Maximum Age of 65 Years

Our premium finance lenders provide qualified candidates leverage – a loan – to further enhance the cash value of the candidate’s life insurance policy, which improves the policy opportunity to maximize performance.

Why would a lender provide this leverage? Because the candidate’s policy serves as collateral, and risk to the lender is minimal, if not completely eliminated.

How does it work exactly? The insurance company provides a return (pays interest) on any cash value within the policy.

The premium finance lender provides investment capital up front knowing their repayment is guaranteed.

The client benefits as well, because the increase in policy value offsets the expenses within their policy, while enabling clients to grow wealth for retirement, over time, via interest paid by the insurance company.

Why Consider Premium Financing as an Asset?

After achieving financial success, many people begin seeking alternative ways to turn that success into long-term financial security for themselves and their families.

At the core, Premium Financing is a way of making your money work for you – the foundation of any good investment strategy. Premium finance lenders offer the kind of downside protection everyone needs in the portfolio.

In a bear market, people often balk at the idea of investing. Rather, you should be considering inflation proof assets, like this one.

This strategy, often thought to be reserved for the ultra-wealthy, is a lot more attainable than you might expect.

At Enhanced Funding Solutions, we help clients in a wide variety of professions benefit from PFLI. 

The ability to use the policy as collateral for a loan enables investors to significantly increase the cash value, without having to rely solely on their own funds.

Not only that, but the growth in the policy is completely tax-free. This type of fixed investment asset provides downside protection – a hot topic in today’s bear market.


Put simply, Enhanced Funding Solutions specializes in establishing strong leveraged solutions for clients to significantly enhance their financial strength.

Your life insurance policy is an asset, just like your stocks, bonds, and real estate for example. Shouldn’t it be utilized as such?

Still wondering if a premium financed life insurance policy is right for you? Having gained experience as a client first, there’s no one better qualified to walk you through the benefits and risks of this investment strategy than Enhanced Funding Solutions founder Jeff Faine.

Reach out today to explore your options: email me at or call 773-318-9608.

Jeff Faine Enhanced Funding Solutions-8 - Buffer Assets



901 N Lake Destiny Drive, STE 380

Maitland, FL 32751


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