Los Angeles, CA commercial litigation attorney Johnathan M. Deer talks about the hidden costs of life insurance premium finance. He explains that in life insurance premium finance deals, there are several hidden costs that are often not disclosed to the insured. These include the cost of the financing itself, which is typically substantial. Another significant cost is the collateral. While clients are usually told they can post collateral, they are often not informed that it effectively removes that collateral from their available assets for the life of the policy, which is essentially the same as spending that money. The third hidden cost is the insurance itself. Many policies used in these deals carry expenses that can increase significantly over time due to factors like the cost of insurance and the policy’s performance. He emphasizes that these hidden costs are real, often understated, and can drastically impact whether the deal makes sense.