The concept behind Premium Funding is not a new one. Its roots are firmly planted in USA , Europe and Australia . Premium funding targets single premium insurance and the 60-day warranty clause common to such insurance policies.

Most insurance policies include a Premium Warranty Clause that states:

“…any premium due must be paid…in full… within sixty (60) days from the inception date of the coverage… In the event… the premium is not paid in full… the cover shall be deemed to have terminated from the expiry of the premium warranty period and we shall be discharged from all liability….”

If you are able to pay your premium within 60 days, your coverage remains effective. However, if you are unable to do so, you can be left without coverage and take on the risk of self-insurance without even being aware of it.