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.

• Low upfront cost to buy a life policy.
• Higher life cover can be afforded by spreading the cost of buying a life policy across multiple payments.
• Cash saved by not paying a single premium upfront can remain invested with the aim of growing that money more quickly than the higher cost of paying a single premium.
• No further premium payments are required if the life insured dies during the regular premium period.

• Higher overall cost than paying a single premium for a life insurance policy upfront.
• Increased chance a life policy lapses when a policy owner is required to pay premiums over a number of years. If a policy lapses, the life insured may lose the cover and no death benefit is payable.