We understand that many Australian’s are currently facing uncertain times, and potentially a loss of income due to the COVID-19 pandemic. Given this current climate, we sympathise that you may be concerned about your ability to pay Strata insurance renewals. This is where Premium Funding comes in.
Premium Funding payment solutions allow you to pay your insurance renewals over a period of time, to help ease the burden of financial stress.
What is Premium Funding?
Pay insurance premiums by the month.
Premium Funding Programs are a flexible financial solution designed to enable you to spread the cost of your strata insurance premium over equal monthly instalments of up to 10 months.
Removing the financial burden of a lump sum insurance payment can help to free up your cash flow, so you can utilise money which would otherwise have been spent on insurance, on essential items and immediate needs.
The benefits of Premium Funding:
Strata Insurance is an absolute necessity, however the cost of insurance doesn’t need to restrict cash flow or cause unnecessary angst for you and the Owners Corporation.
Premium Funding payment solutions can be extremely beneficial for a number of reasons:
- Affordability. Premium Funding allows Strata insurance to be more affordable.
- Low cost. A low-cost financing option with competitive fixed interest rates.
- Tax Deductible. Generally speaking you may be able to claim a deduction on interest expenses, however, we recommend that you obtain advice from an accountant for confirmation of what applies to your individual circumstances.
- No Guarantor Required. It doesn’t require personal guarantees.
How does it work?
Your insurance broker will guide you through the simple process of arranging Premium Funding. Below we have provided a brief explanation on how it works:
- Premium Funding providers offer flexible payment arrangements that evenly split the total premium due into a maximum of 10 monthly instalments. The number of instalments selected is dependent on your needs.
- Once the payment plan has been finalised and approved, the premium funder will pay the entire premium due directly to the nominated insurer.
- Going forward, the premium funder will deduct the agreed monthly payments from you, in accordance with the terms of the contract.
The application process is far simpler than a bank loan and requires fewer background checks and credit reports.
It’s also good to know that upon renewal of the strata insurance each year, existing Premium Funding contracts can easily be rolled over, minimising the need for you to complete additional applications.
We are here to help. Please contact your Whitbread Strata broker for more information on premium funding payment solutions.
T: 1300 424 627
E: info@whitbread.com.au
This article is not intended to be personal advice and you should not rely on it as a substitute for any form of personal advice. Please contact Whitbread Associates Pty Ltd ABN 69 005 490 228 License Number: 229092 trading as Whitbread Insurance Brokers for further information or refer to our website.
