Premium funding with Blanket Insurance
When you take out an insurance policy, you can choose to either pay the full premium upfront or spread the cost over manageable instalments via premium funding. At Blanket Insurance, we partner with reputable funders so you can protect what matters now while paying later.
Who do we use?
Why is it called a “loan”?
Premium funding works like a short-term loan. The funder pays the full insurance premium to the insurer on your behalf. You, in turn, agree to repay the funder in regular instalments.
The reason it is called a loan is because:
- You borrow the funds (via the funder) for your insurance premium.
- The funder expects repayment of the borrowed amount (the premium) plus interest and fees.
- Until you repay the funder, their funding covers your insurer’s payment.
Why am I charged interest?
Because the funder has paid the full premium up front to the insurer on your behalf, you are repaying their outlay over time. Interest is charged as part of the cost of that service.
The interest covers:
- The cost of capital the funder uses to pay the insurer
- Administrative and servicing costs of managing the instalment plan
- Risk of non-payment or default
While it may feel like extra cost, the benefit is cash-flow flexibility: you’re able to maintain full insurance coverage now while spreading the payment.
What is the annualised interest rate?
The annualised interest rate is the equivalent interest rate for a full year, expressed so you can compare across loans. Even if your instalment plan runs less than 12 months, the annualised figure tells you how much interest you’d be paying if the loan were held for the full year. We believe in transparency: we disclose the annualised interest rate so you understand the cost of funding.
What if I cannot make a payment?
We understand that life can throw curveballs. Here’s what happens if you miss a payment:
- Your funder will typically send a reminder and attempt to re-debit a few days later.
- Missing multiple payments could result in the funder cancelling the funding agreement, meaning you’ll be required to pay the remaining premium directly.
- If the insurer is not paid on time, your policy could lapse, which means no cover for claims during the unpaid period.
- If you foresee difficulty in making a payment, contact your funder (or us) immediately to explore whether an alternative arrangement (short extension, modified instalment schedule) is possible.
How to decide if premium funding is right for you
Consider the following:
- Do you prefer to keep cash-flow flexible and spread the cost of your insurance?
- Are the funding interest and fees acceptable in exchange for that flexibility?
- Can you commit to the instalment schedule to avoid risking your policy?
If the answers are mostly “yes”, premium funding can be a smart and helpful option.
If you’d like to discuss further, or compare upfront payment versus funding, we’re happy to help you review your options and find the right path for your business or personal cover.
We value your experience. If you have any concerns or feedback about our service, please share them with us through our complaints page.