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Steer Clear of 'Premium Financing'

Here's an unusual side effect of low interest rates: Some people are borrowing money to pay their life-insurance premiums.

Known in the industry as premium financing, the concept has been around a long time, largely with corporations that need insurance but don't want to front the annual costs. It has been sold to individuals in the past with limited success. But individuals are increasingly being approached with and embracing this strategy since interest rates have gotten so low.