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What (who) is premium discounting - definition

Premium Finance; Premium funding; Premium finance; Premium Financing Company; Premium Financing

Hyperbolic discounting

ECONOMIC MODEL

Secular basis; Quasi-hyperbolic discounting

In economics, hyperbolic discounting is a time-inconsistent model of delay discounting. It is one of the cornerstones of behavioral economics and its brain-basis is actively being studied by neuroeconomics researchers.

https://en.wikipedia.org/wiki/Hyperbolic_discounting

Liquidity premium

In economics, a liquidity premium is the explanation for a difference between two types of financial securities (e.g.

https://en.wikipedia.org/wiki/Liquidity_premium

Risk premium

MINIMUM AMOUNT OF MONEY BY WHICH THE EXPECTED RETURN ON A RISKY ASSET MUST EXCEED THE KNOWN RETURN ON A RISK-FREE ASSET

Certainty equivalent; Risk Premium; Risk premia; Risk Premiums; Premium for risk; Certainty-equivalent

A risk premium is a measure of excess return that is required by an individual to compensate being subjected to an increased level of risk. It is used widely in finance and economics, the general definition being the expected risky return less the risk-free return, as demonstrated by the formula below.

https://en.wikipedia.org/wiki/Risk_premium

Wikipedia

Premium financing

Premium financing is the lending of funds to a person or company to cover the cost of an insurance premium. Premium finance loans are often provided by a third party finance entity known as a premium financing company; however insurance companies and insurance brokerages occasionally provide premium financing services through premium finance platforms. Premium financing is mainly devoted to financing life insurance which differs from property and casualty insurance.

To finance a premium, the individual or company requesting insurance must sign a premium finance agreement with the premium finance company. The loan arrangement may last from one year to the life of the policy. The premium finance company then pays the insurance premium and bills the individual or company, usually in monthly installments, for the cost of the loan.

Typically, clients that engage in this transaction are age 29 to 75; with net worth of $5MM or greater. Premium financing is popular when interest rates are low.

https://en.wikipedia.org/wiki/Premium financing