You fund part. The bank funds part.
Your contribution and a loan pay the premium. Policy rights may be assigned to the lender as security.
You40%
Loan60%
Premium100%
A premium. A loan.
A bigger picture.
Understand how premium financing works. Watch the cash flows. Then put the assumptions to the test.
An interactive guide · Based on your Excel model
The long viewIllustrative · HKD
One policy. Three possible paths.
20years of possibilities
Example premiumHK$1,000,000
Financed at the start60%
A growth illustration, not a forecast or guaranteed cash value.
Follow the money.
Premium financing means borrowing to pay insurance premiums. The loan and the policy are two separate commitments.
Growth is possible. Interest is due.
Policy value can grow while you pay borrowing costs. Non-guaranteed policy benefits and loan rates can change.
PolicyValue
BankInterest
The loan still needs an exit.
An interest-only loan leaves the principal due at maturity. Plan how to repay it without relying on refinancing.
Policy value− debt
Net assets− cash paid
See the whole financial picture.
Adjust your policy and financing. Follow the value, the cash payments, and the point where they meet.
–
Possible break-even–
Your value. Your commitments.
TodayYear 40
Estimated policy value–
Loan remaining–
Cumulative cash paid–
At the start–
While the loan runs–
–
Every payment, accounted for.
| Year / milestone | Premium | Interest + fees | Principal repaid | Your cash outflow | Loan remaining | Policy value |
|---|
At year 0, your cash outflow = first premium − initial loan draw + upfront fee.
Compare at your selected year
| Scenario | Policy / loan rate | Net economic gain | Possible break-even |
|---|
How to read this model
Look beyond
the headline return.
Borrowing preserves cash at the start. It also creates obligations that policy growth may not cover.
Read the Insurance Authority guide