Premium funding with Cactus Insurance
When you take out an insurance policy, you can choose to pay the full premium upfront or spread the cost over manageable instalments using premium funding. At Cactus Insurance, we partner with trusted funders so you can protect what matters now and pay it off over time.
FAQ
Who do we use?
Why is it called a “loan”?
Premium funding works a lot like a short-term loan. The funder pays your full insurance premium to the insurer on your behalf, and you agree to pay the funder back in regular instalments.
It’s called a loan because:
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You’re borrowing the funds (through the funder) to cover your insurance premium.
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The funder expects to be repaid — the premium amount plus interest and fees.
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Until you’ve repaid them, their funding is what keeps your cover in place.
Why am I charged interest?
Since the funder pays the full premium upfront for you, you’re paying them back over time — and interest is part of that setup.
That interest covers:
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The cost of capital the funder uses to pay your insurer
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Admin and service costs for managing your instalment plan
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The risk they take on if someone misses payments
It might feel like an extra cost, but the trade-off is flexibility: you get to keep full cover in place without draining your cash reserves in one go.
What is the annualised interest rate?
The annualised interest rate is just a way of showing the cost of interest over a full year — even if your instalment plan runs for less than 12 months.
It helps you compare funding options and understand the true cost. We believe in keeping things clear, so we’ll always disclose the annualised rate upfront.
What if I cannot make a payment?
We get it — sometimes things don’t go to plan. If you miss a payment, here’s what usually happens:
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The funder will send you a reminder and try to re-debit a few days later
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If multiple payments are missed, the funding agreement could be cancelled — meaning you’d need to pay the remaining premium directly
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If the insurer isn’t paid on time, your policy could lapse, and that means no cover for any claims during the unpaid period
If you think you might struggle to make a payment, get in touch with your funder or contact us straight away. We’ll help you explore your options — like a short extension or adjusted payment schedule.
How to decide if premium funding is right for you
Ask yourself:
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Would spreading the cost help keep your cash flow healthy?
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Are the interest and fees a fair trade for that flexibility?
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Can you stick to the instalment plan so your cover stays active?
If you’re mostly nodding “yes”, premium funding could be a handy solution.
Want to chat through your options or compare funding vs upfront payment? We’re happy to help you figure out what’s best for your business or personal insurance needs.
We value your experience. If you have any concerns or feedback about our service, please share them with us through our complaints page.