Multi-pay premium finance allows the cost of buying a life insurance policy to be spread over a period of time. For example, a life policy purchase may be paid for through a series of regular premiums over 5, 10, 15 years or even longer.
By not paying all of the premium up front, it allows a policy purchaser to use the capital that would have been invested in a single up front premium to be used for other investments. From a cash flow perspective, it also helps the life policy buyer to plan their personal or business cash flow payments more easily.
However, multi-paying a life insurance policy comes with an additional cost which is determined by the insurer at the start of the policy. The cost is usually in the form of a higher overall premium being charged by the insurer, which varies depending upon the length of multi-payments selected.