Multi-pay premium finance is a way to pay for a life insurance policy over a period of time, rather than paying the full premium upfront. This can be helpful for managing personal or business cash flow and allowing the use of capital for other investments or business needs. However, there is an additional cost for this option, which is a higher overall premium charged by the insurer. The length of the multi-payment period affects the amount of the additional premium cost.

• Lower Initial Costs: makes life coverage more accessible when you're younger and healthier.
• Higher Coverage: you can buy more life cover by spreading out the cost over time.
• Higher Growth: by investing funds in other asset classes like property, stocks or prvate equity, you could get higher returns than what you could achieve by simply paying a lump-sum premium.
• No More Premiums: if the insured person passes away during the payment period.
• Flexible Payment Options: allow for adjustments according to financial circumstances.
• No Bank Interest: or arrangemen fees, loan recalls and no credit checks.
• Change Premium Amounts: or pause premium payments as needed.

• Higher Total Cost: Over the lifespan of the policy, the total amount paid in premiums is typically higher compared to a single-premium policy due to the time value of money.
• Risk of Lapse: There is an increased risk that the policy may lapse if the policyholder fails to consistently make premium payments over the years. A lapsed policy means the insured loses coverage and beneficiaries won’t receive a death benefit.
• Complex Budgeting: Managing the payment schedules requires careful financial planning and budgeting.
• Economic Pressure: During economic downturns or personal financial hardship, maintaining regular premium payments can be challenging, increasing the risk of policy forfeiture.
• Reduced Cash Value Growth: The cash value grows more slowly because money that could be earning interest is instead going toward supporting the life insurance payments.
• Opportunity Cost: The funds used for ongoing premium payments could have been invested elsewhere, potentially earning a higher rate of return.