A “Loan for Life™” is a non-recourse fixed interest rate loan against a whole life or IUL insurance policy. Using ONLY the Policy as collateral – there is NEVER any personal liability or responsibility for repayment during the term of the policy. The loan extends to the earlier of the policy maturity date or death of the insured.
Owners receive cash at closing, while not paying taxes on any income earned inside the policy.
Yes, If you have a client with a whole life insurance policy with a cash account value of $250,000 to $10,000,000+. In some cases, we will consider policies outside of those parameters. The best way to find out if your client qualifies is to complete our Pre-Qualification Application from the link below.
The amount the Owner can borrow and how much beneficial interest they keep is determined by the Lenders individual underwriting which considers a number of different factors including: the cash value, the death benefit amount and interest rate of existing policy loan (if any), dividend/crediting rates, premium cost, and historical policy performance.
Whole life insurance policies and indexed universal life insurance policies are preferred. Contact us today to see if your clients policy qualifies.
No, there are no restrictions on how your client can use the funds they receive from the policy.
No, the loan proceeds from the policy are not taxable
There are no out of pocket fees for the financial professional or the seller to get qualified.
Yes, all financial and other personal information obtained during the course of the transaction is treated with the utmost confidentiality and will not be disclosed to any unauthorized party.
There are several reasons an insured may want to get cash from their insurance policy which includes the following:
– The policy is no longer needed or wanted
– Premium payments have become too expensive
– May need funds to help pay personal expenses
– Their estate planning needs may have changed
Your client will no longer be responsible for making premium payments on the policy. Cash Value Lending Corp will continue to make the premiums due on the policy (if applicable) and will pay the beneficiary(ies) of choice the remaining insurance coverage at your clients passing after paying off the loan and interest.
Your client will not have any obligation when it comes to future premium payments after they borrow against their policy.
With the correct documentation, you and your client will receive an offer in 5-10 business days.
