Investment, stock trade, banking, loans, insurance and nearly all finance related dealings have lots of monetary terms, which might sound alien to an odd user. Life insurance carriers and premium finance lenders use the same fundamental financial devices. Carriers fund insurance contracts with company debt. Lenders provide liquidity at private debt charges. Corporate debt yields are lower than private debt charges. As such, premium financing might carry a adverse spread for the shopper financing the premiums. Indexed Universal Life insurance coverage, by means of Indexing, may present the policy the interest crediting wanted to assist the arbitrage.
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