It all depends on multiple factors – but generally an ideal premium financing prospect is in average to good health, with excellent credit and a high net worth of at least $5 million. Both health and financial underwriting will play a large role in the process, and candidates will be required to prove that they are in good shape in both aspects.

The health requirements aren’t flexible – if a candidate cannot qualify for life insurance coverage due to poor health, premium financing won’t be an available strategy for them. However, there is a bit of wiggle room on the financial side of underwriting, in certain scenarios. If there is a significant amount of annual income, a lower net worth may be overlooked. Certain estate planning or business planning scenarios can also create exceptions if the underlying individuals don’t have the required levels of net worth.