Coventry Capital in Fort Washington, Pa., announced an innovation Wednesday that makes premium financing available to owners of existing life insurance policies.
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The program lets policy owners maintain life insurance coverage by financing the premiums using the market value of the policy itself as collateral. Until now, premium financing had been available only to people buying new coverage.
People now have three ways to gain access to the secondary market value of their life insurance, Coventry said. They can sell their policies in the secondary market using a life settlement, swap their policies for reduced coverage requiring no future premiums, or finance future premiums on either new or existing coverage.
