Recommendation for Life Insurance for Biz Loan
- Thread starter Magenta
- Start date
Lloyds of Lubbock
Guru
- 714
Can you be more specific?
What part does a biz loan play?
Are you looking for a biz loan using a life insurance policy?
What part does a biz loan play?
Are you looking for a biz loan using a life insurance policy?
- Thread starter
- #3
Good questions. Sorry - I should have stated that better. Potential client is looking for a life insurance policy (5 million) because he's getting a business loan to buy out his (former) investors. He doesn't want to have to ask the board's permission every time he wants to pivot in a different direction. The bank is requiring the life insurance policy before they finalize the loan.
- 4,618
Any of your best term life carriers should be able to offer something for whatever term duration matches his loan terms.
Note, on occasion I would suggest some WL or IUL in this situation. However, for the 1st time in my 20+ yr career, apparently a lender/collateral assignee this week walked into the carrier headquarters & surrendered the insurance policy for it's cash value.
Apparently, the collateral assignee needed the money that badly that they exercised their rights to cash out the policy. Extremely rare, but made me think a bit about it. Had the policy been term, it would have had no cash value to surrender.
Note, on occasion I would suggest some WL or IUL in this situation. However, for the 1st time in my 20+ yr career, apparently a lender/collateral assignee this week walked into the carrier headquarters & surrendered the insurance policy for it's cash value.
Apparently, the collateral assignee needed the money that badly that they exercised their rights to cash out the policy. Extremely rare, but made me think a bit about it. Had the policy been term, it would have had no cash value to surrender.
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