Month: January 2024

Life insurance policies provide financial protection for families and beneficiaries in the event of the insured’s death. One way some policyholders leverage their life insurance is through a collateral assignment, which allows them to access funds from the policy before death. A collateral assignment on a life insurance policy works as security for a loan, allowing the policyholder to borrow money they pay back over time. If the policyholder stops making payments on the loan or passes away, the creditor has a right to receive a portion or all of the death benefit to repay the outstanding loan amount. Though not ideal for all situations, collateral assignments allow policyholders increased financial flexibility during their lifetime. 

In this post, we’ll look closer at how collateral assignments on life insurance contracts work, their pros and cons, and things to consider before pursuing a collateral assignment.

Understanding Collateral Assignments

If you need money for a large purchase or expense, consider borrowing against your life insurance policy. This is called a collateral assignment. It allows you to access funds from your policy before you pass away. Here’s how it works.

A collateral assignment means using your life insurance policy as collateral or security for a loan. So you (the policy owner) borrow money from a lender. In return, that lender has a claim on some or all of the death benefits from your life insurance when you die. Their claim is equal to the amount you still owe on the loan.

To set up a collateral assignment, you must complete a form with your life insurance company naming the lender. Both you and the lender must sign this form. Your insurance company then confirms to the lender that they are the collateral assignee. This gives the lender rights to the death benefit if the loan is not fully paid off.

One significant advantage of a collateral assignment is the lender can only take the unpaid loan balance. They do not get the total death benefit amount. Any remaining death benefit goes to the beneficiaries you named.

Nonetheless, collateral assignments also have downsides to think about. For example, they may limit your ability to withdraw cash value from a whole life or universal policy. And they reduce what your beneficiaries would collect from the death benefit.

It’s wise to be sure you have enough life insurance for final expenses before doing a collateral assignment. You also want to consider if you have other assets to leave beneficiaries. If not, review your coverage to see if buying more insurance makes sense.

When you fully repay the loan, the collateral assignment ends. Your policy is no longer used as collateral, so you regain all the advantages of having life insurance.

What Are The Steps For Using Your Life Insurance As Collateral Assignment?

If you want to utilize collateral assignment through their life insurance policy, here’s what you need to do.

Understand What’s Required

Before applying, learn what lenders typically require for a collateral assignment:

• An active life insurance policy with cash value. Term life policies usually don’t qualify (unless you’re looking to get an SBA loan).
• Enough death benefits to cover the loan amount.
• Your commitment to keep paying policy premiums.

If you don’t have a qualifying policy, you must buy one first.

Get a Life Insurance Policy

Since most life insurers require health underwriting, buying a policy is not guaranteed. The insurer will:

• Ask for your medical history
• Have you take a health exam
• Consider your lifestyle risks

If you have health conditions, coverage may cost more or be denied. Once approved, you must pay ongoing premiums to keep the policy active.

Complete the Collateral Assignment Form

This crucial form goes to your life insurer. It names the lender secured by your policy. Details needed include:

• Your personal information
• Life insurance policy number
• Lender’s contact information
• Loan amount

You and the lender must both sign this form. Some insurers allow e-signatures to speed processing.

Submit the Signed Form

Send the finished, signed collateral assignment form to your life insurance company. Confirm they received it and monitor processing time. Filing and approval can often take up to 7-10 days.

Get Confirmation

Your lender must get confirmation from the insurer that the assignment is in force. This gives the lender rights to the death benefit if unpaid loan balances remain when you pass away.

Apply for the Loan

With the collateral assignment confirmed, you can formally apply for the loan you need. The lender will explain repayment terms, interest rates, and other details.

Common Mistakes People Make When Using Collateral Assignments Through Their Life Insurance

Now that we’ve covered the basics of how collateral assignments work and the steps to apply for one let’s explore some key areas where mistakes are often made. Awareness of these common errors can help you avoid pitfalls if you pursue a collateral assignment through your life insurance policy.

The good news is that collateral assignments can provide accurate financial benefits. However, there are a few key things people often get wrong or overlook.

Assigning The Lender As The Beneficiary

The first mistake people make in this process is assigning the lender as the policy beneficiary. This can end in the lender receiving the death benefit, leaving nothing for your family. The policy’s beneficiaries should always be those you want to protect and support, such as your family members or loved ones. Instead of naming the lender as the beneficiary, the correct approach is to assign collateral to the lender.

Insufficient Coverage For Beneficiaries 

Using a collateral assignment can reduce the life insurance death benefit for other beneficiaries. So, if possible, you may want to consider taking out a separate policy to cover the needs of your beneficiaries adequately. This separate policy would ensure that in the event of your passing, your loved ones are not financially disadvantaged due to the loan repayment.

Not Checking Lenders Requirements

The first thing you should do, which many people fail to do, is check the lender’s specific requirements before setting up a collateral assignment. The reason is that some lenders may only accept certain types of insurance policies, and not verifying this beforehand can result in delays and additional processes.

Failing to Review the Policy Regularly

Once a collateral assignment is in place, a frequent mistake is failing to review the policy regularly. Life circumstances and financial situations can change, and it’s vital to ensure that your life insurance policy continues to meet your needs. A regular review could help if you need to someday make an adjustment to your policy.

Lack Of Guidance From a Reputable Company

A common problem people have when setting up a collateral assignment is not seeking guidance from a reputable financial advisor or insurance professional. Many individuals attempt to do this complicated process independently, leading to misunderstandings about the terms, risks, and implications of the collateral assignment. Professional advice is essential to ensure that you make informed decisions that align with your financial goals and protect your beneficiaries’ interests.

Get The Right Guidance With Liberty Financial Group

At Liberty Financial Group, we provide a comprehensive range of insurance services, with a special focus on life insurance policies that are essential for those considering collateral assignments. Our approach is meticulously tailored to meet the unique needs and budget constraints of each client, ensuring that you receive the most suitable policy at the most competitive price.

Our Services in Relation to Collateral Assignments

Customized Life Insurance Plans: We understand life insurance’s critical role in financial planning, primarily when used for collateral assignments. We specialize in offering policies that meet your immediate financial needs and align with your long-term objectives. Our expertise lies in identifying and customizing policies that are perfect for securing loans through collateral assignments.

Expert Guidance: Going through the intricacies of collateral assignments can be challenging. That’s why our team of experienced insurance professionals is dedicated to providing honest, unbiased advice. We’ll guide you through each step of the process, helping you understand the implications and benefits of using your life insurance as collateral. We aim to ensure that you make informed decisions that safeguard your financial future.

Access to a Wide Range of Insurance Carriers: Our partnership with over 50 top insurance carriers empowers you with a comprehensive selection of insurance options. This variety is vital when choosing a policy for a collateral assignment, as it allows you to compare and select the best fit based on your specific requirements and circumstances.

How We Can Assist You

If you’re considering using your life insurance for a collateral assignment, Liberty Financial Group is here to assist you. We’ll help you find the right policy, provide expert advice on the intricacies of collateral assignments, and ensure that your decision supports both your immediate financial needs and long-term family security. Trust us to be your companion in navigating this critical financial decision.

Getting life insurance at age 60 can be complex and potentially expensive. With increased age comes higher premiums, but coverage can still be critical for financial security and legacy planning. 

When shopping for policies in your early retirement years, understanding the key factors influencing costs is essential to finding an affordable provider.

While it is difficult to pinpoint exact figures due to significant variability among individuals, this article will explore the major considerations that affect life insurance rates at age 60 in 2024. We will analyze policy types, health statuses, lifestyle choices, coverage durations, etc. 

Let’s dive into it. 

Understanding Life Insurance at Age 60

By age 60, most Americans have significant assets and financial obligations that an unexpected passing would impact. Though retirement is on the horizon, costs related to living expenses, healthcare, debts, and more may still loom large. Furthermore, many 60-year-olds hope to one day provide their loved ones an inheritance or financial security.

Life insurance helps protect against the loss of income and ensures funds are available to cover final expenses or bequeathments. Term life policies provide affordable coverage for a set period, while permanent or whole life insurance has higher premiums but accumulates cash value alongside death benefits. The optimal policy depends on an individual’s health, budget, and financial priorities.

Overall, the need for coverage at age 60 relates more to legacy planning than income replacement. However, health risks also increase with age, making affordable premiums more challenging to obtain. Age is one of the primary characteristics evaluated during the underwriting process, determining eligibility and rates.

By accounting for medical history, gender, and lifestyle habits, insurers estimate lifespan probabilities and scale pricing accordingly. And for 60-year-olds, actuaries know that statistically, more health issues lie ahead. Thus, applying for life insurance earlier leads to significant savings, but obtaining quotes across multiple carriers can still reduce costs, even at this stage of life.

Critical Factors Affecting Life Insurance Costs for 60-Year-Olds

Type of Life Insurance Policy

When comparing term life vs. whole life insurance costs, it’s essential to consider the suitability of each type for 60-year-olds. Term life insurance typically offers lower premiums for a specific period, making it suitable for those with temporary financial obligations or needing to replace income for surviving dependents. Policy terms usually range from 10 to 30 years.

On the other hand, whole life insurance provides lifelong coverage with an investment component, often resulting in higher premiums but also offering cash value accumulation and permanent protection. This type works well for funeral costs, estate taxes, and leaving an inheritance. Carefully weighing needs and budget is key in choosing the right policy.

Health and Medical History

Pre-existing conditions and overall health significantly impact premiums for 60-year-olds. During underwriting, the applicant must answer health questions and take a medical exam so insurers can accurately assess risks. Individuals with health issues like heart disease or cancer may face higher costs or potential coverage denial.

A comprehensive understanding of an applicant’s health leads to more precise risk classification and pricing. Providing accurate health histories and being forthcoming about any medical treatment or symptoms is crucial to avoiding unexpected rate increases later on.

Lifestyle Factors

Lifestyle choices such as smoking, alcohol consumption, and participation in high-risk activities can substantially impact insurance costs for 60-year-olds. Insurers often consider these factors when assessing mortality risk, which directly influences premium pricing.

For example, those who smoke may pay 2-3 times more for coverage compared to non-smokers in the same age bracket. Excessive drinking or dangerous hobbies like rock climbing also raise concerns for insurers. Making positive lifestyle changes can significantly reduce policy costs.

Policy Duration and Coverage Amount

The length of the policy and the desired coverage amount directly influence premiums. Longer terms and higher payouts equal greater overall protection, so monthly costs are higher to match the increased liability.

Term life policies for 60-year-olds usually run 10-30 years, depending on specific needs. $250,000 is the minimum coverage recommended at this life stage when dependents are fewer. Overall costs scale up with both duration and amount.

Strategies to Reduce Life Insurance Costs at Age 60

As we mentioned above, those who smoke may pay 2-3 times more for life insurance coverage compared to non-smokers in the same age bracket. So, you’re probably wondering what other factors play a role in determining life insurance costs at age 60 and how you could potentially get these costs down. In this section, we will explore various strategies and adjustments that can be made to understand these factors better and reduce your life insurance premiums effectively. 

Shop Around and Compare Quotes

Prices for the same coverage can be very different across insurance companies. Using online comparison tools helps identify the most competitively priced options. Consulting experienced brokers also allows filtering choices from apples to apples.

Choose the Right Type of Policy

Term life insurance only protects a set timeframe, while whole life offers lifetime coverage. Term is the more budget-friendly option suitable for temporary needs like covering debts. Whole life builds cash value but has pricier premiums.

Determine the Appropriate Coverage Amount

Analyze current expenses and future financial obligations for dependents to calculate adequate protection. Buying more coverage than needed wastes money. Re-evaluate this amount every few years as obligations shift.

Maintain a Healthy Lifestyle

Insurers reward healthy behaviors with lower premiums. Exercising regularly, eating nutritious foods, maintaining an ideal weight, and avoiding tobacco use demonstrate lower risk. Some carriers even offer discounts for wearing fitness trackers.

Bundle Insurance Policies

Many carriers offer multi-policy or loyalty discounts. Adding home, auto, or umbrella insurance alongside life insurance can lower overall costs. Building a history with one company often leads to savings.

Pay Annually

Opting to pay premiums yearly rather than monthly avoids administrative fees and can reduce the overall expense by 5-10%. Just ensure to budget properly if choosing this route.

The Best Place To Weigh Your Options: Liberty Financial Group

At Liberty Financial Group, we understand that your insurance needs at age 60 are unique. You might be looking for a policy that offers affordability, aligns with your retirement plans, or provides a secure financial future for your loved ones. Our partnership with over 50 top insurance carriers guarantees we can offer you diverse options, allowing you to find the perfect balance between coverage and cost.

Why Choose Liberty Financial Group?

• Custom Solutions: We specialize in finding life insurance policies that cater to the specific necessities of individuals at age 60, weighing all the factors that impact your premiums and coverage requirements.
• Expert Guidance: Our team of adept professionals is committed to guiding you through the intricacies of life insurance at this stage in life, guaranteeing that you make informed decisions.
• Competitive Pricing: With access to a comprehensive group of insurance providers, we are positioned to offer you the most competitive rates, making sure that you get the best possible value for your investment.

Take the Next Step

If you’re contemplating getting life insurance at age 60, let us help you explore your options and find a policy that meets your needs and budget. Contact us today for a personalized consultation and take the first step towards securing your financial future with confidence.

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Using life insurance policies as collateral for loans is a lesser-known financial plan that more people may want to consider. This thorough guide will explain what it means to collateralize a life insurance policy, who has the authority to assign a policy, the benefits this approach offers, and critical factors to evaluate when deciding if it makes sense for your situation. 

Answer To The Question: Who Can Assign a Life Insurance Policy As Collateral?

The person authorized to assign a life insurance policy as collateral for a loan is the legal owner of the policy, as stated in the policy documents. Even if the owner is not the insured individual the policy covers, they maintain complete authority over it. This includes leveraging the accumulated cash value within the policy to secure financing.

As the owner, they hold ongoing responsibilities as well. Primary among them is paying all the premium dues that maintain the policy for the duration borrowed funds remain unpaid. If premiums lapse at any point, it could create complications with the lender depending on the collateral agreement terms.

Using an active life insurance policy for collateral has come to be known as a collateral assignment arrangement. In this setup, the lending party is designated the assignee status of the policy. This entails the legal right to portion out any remaining unpaid balance from the eventual death benefit payout made by the insurance company.

For example, if the original principal loan amount was $100,000, and only $75,000 was repaid when the insured individual passes away, the lender could claim the outstanding $25,000 from the death benefit. Any balance post-settling the financing debt gets directed to other named beneficiaries in the policy documents.

Definition and Basic Concept of Collateral Assignment of Life Insurance

Collateral assignment of life insurance means using an active policy as backing for a loan. The policy owner sets up a legal agreement with a lender, allowing their death benefit payout to cover unpaid amounts if certain things happen.

Most importantly, if the borrower stops repaying the loan, the lender can take the remaining money owed from the death benefit when the insured person passes away. For example, if $75,000 was borrowed initially but only $50,000 was paid back when the borrower died, the lender gets the extra $25,000 rather than the money going to other beneficiaries.

After the lender takes what’s owed, any leftover death benefit goes to the designated beneficiaries like family members. So if the total payout was $250,000 and $25,000 went to repay the loan, the beneficiaries would receive the remaining $225,000.

The policy owner does need to keep premium payments current while loan money is unpaid. Defaulting could lead the lender to demand early repayment or additional collateral beyond the policy. 

Using a life insurance policy as collateral is very different than putting up a house, car, or other assets someone owns. The most significant difference is that the policy owner keeps complete control unless loan repayment gets stopped. The lender can only claim the death benefits, not take more personal property.

Also, life insurance builds value differently than what could be from selling a home or car. However, policies still work as collateral while keeping personal assets protected. The risk only applies to the policy so that default won’t jeopardize other belongings.

Additionally, the policy is no longer collateralized once loans are fully repaid. This differs from selling off property tied to regular loans. Owners regain full control with no lasting links to lenders.

In summary, collateral assigning life insurance allows for accessing funds when needed while avoiding loss of personal assets if money can’t be paid back per the lending agreements.

Types of Life Insurance Policies Suitable for Collateral Assignment

A few main policy types work well when using life insurance to back a loan. Term life insurance is an excellent option because it gives affordable protection that matches the length of many loans. If you pass away before repaying the debt, term policies ensure enough to cover what you still owe. Your premiums are lower since term insurance only lasts for a set period, like 10 or 20 years.

Permanent or whole life insurance also collateralizes nicely because the policy builds up cash value over time. This extra money means added security for the lender if the worst happens. It also gives you accessible funds to help pay down some of the borrowed money. But the premiums run higher since the policy pays no matter when you die versus the term having an end date.

There are also particular policies with perks, making collateral loans easier in certain situations. “Decreasing term insurance” slowly lowers the death benefit year-by-year, which can match a loan balance shrinking as you repay it. No medical exam policies get approved faster for people having health issues. These may cost more or pay out less but still give collateral options. 

The takeaway is that both term and permanent forms of life insurance serve collateral needs in the right circumstances. It comes down to factors like how soon you’ll repay borrowed money, your budget for premiums, and whether you require cash accumulation or just death benefit backing.

The Process of Collateral Assignment

Using a life insurance policy to back a loan involves a specific procedure and paperwork between you, the lender, and the insurance company. I’ll explain step-by-step what needs to happen.

First, you need a policy the lender approves of based on how much money is being borrowed. Often, term life insurance works for loans since it gives enough coverage for a set period, matching when you’ll pay everything back. 

Next, tell the lender you want to use your policy as collateral. If you were to pass away before repaying the loan, money from the death benefit covers what you still owe rather than just to your family and other beneficiaries. 

The insurance company has a standard form to be completed to assign your policy as collateral. It captures all the key details like the loan amount, lender contact info, and specifics of the policy itself. This gets submitted back to the insurance company for their records.

Both the insurance company and lender play essential roles in this process of working with you. The insurance company provides the proper documents, officially confirms the assignment, and informs the lender once everything is in place.

Down the road, if you were to pass away with an unpaid balance, the insurance company would first pay the lender up to the amount owed from the death benefit. Any leftovers would then go to beneficiaries listed separately.  

On the lender side, they decide if a policy gets used as collateral based on factors like the size of the loan and reviewing your financial situation. They also keep documentation on file and track that the assignment stays active until you’ve paid in full.

Once fully repaid, the lender sends a release form removing the collateral assignment. You then give this to the insurance company to update their files, returning your policy to regular beneficiary payout procedures.  

So, in summary, collateral assignment requires coordination between you, lenders, and insurance to pledge your policy as official additional repayment security on financing.

Pros and Cons of Using Life Insurance as Collateral

Using life insurance policies as collateral does offer valuable benefits like better rates and access funds, but you have to be mindful of the negatives as well. Below, we will go over the pros and cons. 

Pros of Using Life Insurance as Collateral

Lower Interest Rates

Putting up a life insurance policy as collateral often means the lender can offer lower interest rates than if you just took out a regular uncovered loan. This saves you money in the long run.

Access Cash Without Selling Valuable Assets 

Collateral loans allow you to tap funds but keep all your property, investments, and other possessions instead of being forced to sell off assets. This leaves your nest egg intact for future goals.

Possible Tax Advantages  

In some situations, money borrowed against a policy’s cash value may provide tax benefits since it doesn’t count as taxable income the same way. But outcomes vary person-by-person.

Cash Value Accumulation

Types of permanent life insurance slowly build up savings-like cash value over many years, which can help repay some of what you originally borrowed.

Cons of Using Life Insurance as Collateral

Impacts If You Pass Away with Balances Unpaid  

If you haven’t finished repaying money borrowed when you die, collateral rules mean the lender gets the first claim to the death benefit, reducing payouts to beneficiaries you likely wanted to provide for.

Policy Lapse Risks  

The policy risks terminating early if premiums aren’t paid fully or cash value underperforms. This leaves the lender needing backup collateral sources from you to secure what they already lent.

Potential Tax Downsides

In specific situations, unpaid parts of loans backed by policies could create extra tax bills or liabilities to beneficiaries. So, know the outcomes ahead of time.

Losing Death Benefits If You Default  

Defaulting on repayment triggers the handover of death benefits to the lending institution rather than your intended heirs. This is a worst-case outcome to avoid.

Things to Consider Before Opting for Collateral Assignment

Now that you know the pros and cons of using life insurance as collateral, let’s go over the things you should consider before choosing to go ahead with collateral assignment:

Assessing Loan Repayment Ability

Before proceeding with collateral assignment, carefully assess your ability to repay the loan based on your income, expenses, other debts, and financial goals. Make an honest evaluation so you don’t take on payments that will be a long-term struggle.

Ensuring Adequate Policy Coverage 

Confirm that your policy’s death benefit can sufficiently cover loan amounts in a worst-case scenario. Don’t leave beneficiaries at risk of shortfalls between payouts and outstanding balances. Review this equation yearly as loan balances decrease.

Understanding Policy Ownership Requirements

Remember that policy owners control collateral decision-making, not necessarily the insured person themselves. Verify ownership aligns with your borrowing wishes rather than giving another party unilateral control. Consult insurers to make ownership transfers if warranted.

The more informed you are on these key considerations upfront, the more empowered your choices will be to evaluate if collateral assignment appropriately aligns with your financial situation and priorities. Rushing into assignment agreements without eyes fully open to the tradeoffs serves no one’s long-term interests.

Tips for Successfully Using Life Insurance for Loans

Work With Qualified Agents

Connecting with agents well-versed in collateral assignments ensures right-fit policy selection and completing paperwork adequately to protect against gaps. Their guidance can optimize agreements for all parties.

Maintain Communication With Lenders

Consistent contact provides mutual transparency around material changes and confirms awareness of crucial dates like premium deadlines necessary to avert potential policy lapses endangering collateral postures.

Stay Current On Premium Payments

Most importantly, keep premium payments punctual because payment disruption often permits lenders to rescind lending terms or seize other assets given life insurance safeguards were removed by nonpayment. Avoid such scenarios at all costs.

Periodic Review and Update of Coverage

As outstanding loan balances decrease over loan lifecycles, reviewing death benefit adequacy against remaining sums indicating sufficient coverage for beneficiaries retains importance should unforeseen demise occur before finalizing repayment.

Liberty Financial Group: Expertise in Collateral Loans and Life Insurance Solutions

At Liberty Financial Group, we specialize in leveraging life insurance as a strategic tool for your financial planning, mainly when using it as collateral for loans. Our expertise lies in steering you through the intricacies of collateral assignments, guaranteeing you can secure the funds you need while protecting your beneficiaries and assets. We understand the nuances of different life insurance policies and how they can be effectively utilized to support your financial stability. Our reliable team works diligently to find the most fitting life insurance solutions, aligning them with your lending needs to ensure a seamless and beneficial financial plan.

Are you considering using your life insurance policy as collateral for a loan? Let the experts at Liberty Financial Group guide you through this process. We’ll help you understand how your policy can work for you in securing financial leverage, all while ensuring the protection and future security of your loved ones. Contact us today to explore your options and make informed decisions about your life insurance and financial planning needs.

Frequently Asked Questions

• What Happens to the Collateral Assignment if I Switch Lenders?
  • If you switch lenders, the collateral assignment must be transferred to the new lender. This involves informing the insurance company and the original lender about the change. A new collateral assignment agreement will need to be set up with the new lender.
• Can I Assign a Portion of My Life Insurance Policy as Collateral or Does It Have to Be the Entire Policy?
  • Typically, the entire policy is assigned as collateral. However, the amount the lender can claim is limited to the outstanding loan balance. Assigning only a portion of a policy is generally not practiced due to its complexity.
• Are There Any Specific Conditions Under Which the Collateral Assignment Can Be Revoked?
  • A collateral assignment can be revoked if the loan is fully repaid, both parties (lender and borrower) agree to terminate the agreement, or if the policy is surrendered or lapses.
• How Does Collateral Assignment of a Life Insurance Policy Affect the Policy’s Beneficiaries?
  • The amount owed to the lender reduces the beneficiaries’ potential death benefit. Once the loan is repaid, the beneficiaries are entitled to the full death benefit per the policy terms.
• Is It Possible to Use a Group Life Insurance Policy Provided by an Employer as Collateral?
  • Generally, group life insurance policies are not used as collateral because the individual does not own the policy. However, consulting with the insurance provider for specific policies is best.
• What Are the Tax Implications of Using a Life Insurance Policy as Collateral?
  • Using a life insurance policy as collateral typically has little tax implications. However, if the death benefit is used to pay off the loan, the beneficiaries might receive a reduced amount, which could affect estate planning and taxation.
• How Does Collateral Assignment Affect the Cash Value Accumulation of a Policy?
  • Collateral assignment does not directly affect the cash value accumulation of a policy. The policy continues accumulating value per its terms, regardless of the assignment.
• Can a Life Insurance Policy with an Existing Loan Against Its Cash Value Be Used as Collateral?
  • Yes, but the lender will consider the existing loan amount when determining how much additional credit to extend. The total loan amount cannot exceed the policy’s cash value.
• What Are the Risks to the Lender in a Collateral Assignment of Life Insurance?
  • The primary risk to the lender is if the policy lapses due to non-payment of premiums, reducing its value as collateral. Additionally, if the policy’s death benefit is insufficient to cover the loan balance, the lender may not recover the total amount owed.
• How Does the Process Differ When Using Term Life Insurance Versus Permanent Life Insurance as Collateral?
  • The process is similar, but the key difference lies in the policy type. Term life insurance provides coverage for a specific period. It may not have a cash value component, while permanent life insurance covers the insured’s entire life and typically accumulates cash value. Lenders may prefer permanent life insurance due to the cash value component.

As an entrepreneur, you may have considered applying for financing from the Small Business Administration to start or expand your business. SBA loan programs can offer favorable terms like low-interest rates and long repayment periods. However, these loans come with strict eligibility standards you’ll need to meet. Before applying, it’s essential to understand the key SBA requirements that lenders will evaluate.

 In this concise article, we’ll go over everything you need to know.

What Type of Business Qualifies for an SBA Loan?

First, the SBA specifies what constitutes an “eligible” business. You’ll need an operating for-profit business based in the United States or its territories. Passive or speculative investment companies and most non-profits usually don’t qualify. The SBA has some exceptions, however. For example, employee stock ownership plans (ESOPs) may sometimes secure SBA financing.

Size Standards and Other Qualifications 

Your business must be considered “small” per the SBA’s size standards for your specific industry. These standards state the maximum annual sales revenues or number of employees to be eligible, varying from $750,000 to over $38.5 million in average annual receipts, depending on the sector. For example, a gas station qualifies if it has sales under $27.5 million annually. 

All owners with at least a 20 percent stake in the business must also meet SBA character standards. This includes submitting personal financial statements and lacking criminal convictions or delinquent government debts. The SBA also expects you to make a reasonable personal financial contribution before securing financing.

Use of Proceeds and Ability to Repay

You must state specific business purposes, showing how the loan proceeds will be used constructively to grow the company. Using an SBA loan solely to refinance debts doesn’t typically qualify. 

Convincing projections demonstrating future profitability and an ability to repay the borrowed amount are also crucial. This includes submitting historical and current financial statements like income, balance sheets, and cash flow projections. A credit score over 640 may be necessary, although minimum scores vary by lender.

Collateral and Equity Requirements

For the most popular 7(a) loan program, the SBA doesn’t require lenders to take collateral for loans under $25,000. Loans of $350,000 or less can require collateral but typically don’t mandate it. Above these thresholds, lenders will likely require business assets and/or personal assets as collateral.

Equity injections from owners are also often mandatory, especially for startups. The SBA expects you to contribute resources before asking others to invest in your business through debt financing.

The Specifics Depend on Loan Programs and Lenders 

Keep in mind the specifics vary across the SBA’s various loan programs. For example, 504 loans and microloans have different requirements than standard 7(a) small business loans. Terms and qualifications can also differ from one lender to another. Be sure to consult with lenders on the particular loans you are considering so there are no surprises.

Best Place To Go For Your SBA Loan Guidance

If you still have questions, your best bet is to let us guide you. At Liberty Financial Group, we have a team of experienced professionals who specialize in understanding the ins and outs of SBA loans.

Why Partner with Liberty Financial Group?

• Expertise in SBA Loan Requirements: We have a deep understanding of the insurance requirements essential for SBA loan approval. Let us help you navigate these complexities.
• Customized Insurance Solutions: From life insurance to collateral protection, we offer tailored insurance options that align with SBA loan standards, ensuring your application stands the best chance of success.
• Streamlined Process: Our team simplifies the insurance aspect of your SBA loan application, saving you time and reducing stress.

Our Services Include:

• Life Insurance: Essential for meeting SBA loan requirements, our life insurance policies are designed to fit your business needs and budget.
• Collateral Insurance: We provide comprehensive coverage options for your assets, ensuring they meet the collateral requirements for SBA loans.
• Personalized Consultation: Our experts work closely with you to understand your business and recommend the best insurance strategies for your SBA loan application.

Take the Next Step

Reach out to us today and let us assist you in securing the insurance coverage you need for your SBA loan application.

Selecting the right insurance can be overwhelming, with countless providers offering unlimited options. Most people default to familiar big names like Chase without weighing alternatives better suited for their situation. However, during this open enrollment season, carefully comparing choices is vital given the intricacy of navigating insurance and changes in plan varieties, networks, prescription options, out-of-pocket costs, and more from year to year. 

In this post, we’ll look deeply at one giant in the insurance space – Chase Bank – to better comprehend its strengths and weaknesses. Do they live up to their reputation and convenience, or could another lesser-known provider be a better fit? With an understanding of Chase’s plans, pricing, benefits, customer service, and remaining gaps, you’ll be more qualified to judge if Chase has everything you need or if exploring other insurers could lead to superior coverage this year. Let’s hop into it.

Key Takeaways From This Article

• Chase uses a bancassurance model, partnering with insurers.
• Chase offers convenience and trust as a well-established bank.
• Limited insurance expertise and flexibility in Chase’s policies.
• Chase provides Universal and Variable Life Insurance and Long-Term Care Riders.
• Chase acts as an intermediary, not a direct insurer.
• Potential gaps when it comes to Chase’s insurance-specific customer support.

The Role Banks Play In Insurance

Banks and insurance companies coming together is a natural partnership destined for success. Banks have inherent consumer trust and confidence as well-established institutions that customers often stay with for life. Meanwhile, insurance providers possess specialized expertise but may need a more loyal customer base.

This relationship has led to the increasing concept of “bancassurance” arrangements.

What is Bancassurance?

Bancassurance refers to a partnership arrangement between a bank and an insurance company that enables the insurance provider to sell policies directly to the bank’s customers. This model allows banks to offer comprehensive financial service packages encompassing banking, investment, and insurance options under one roof.

On the insurance company side, pairing with a bank provides access to an established customer base. Bancassurance arrangements represent opportunities for banks to expand their offerings and drive excellent profits through referral fees and revenue sharing with their insurance partners.

Why Do Consumers Consider Bank-Based Insurance?

For customers, purchasing insurance through a trusted bank certainly seems appealing at first glance:

Convenience

Managing multiple financial needs like banking, investment, and insurance via a single company allows for simplicity rather than working with several providers.

Existing Relationships

Banks possess extensive background on current clients’ financial situations, goals, and risk tolerances that can inform personalized product recommendations.

Familiarity and Trust

Powerful banks generally enjoy long-tenured reputations and customer confidence. This can make their insurance offerings seem more credible and reliable.

Streamlined Service

Since banks already have client data, documentation processes like applications may be streamlined.

What are the Potential Drawbacks?

However, there are some notable disadvantages to obtaining insurance solely through a bank rather than exploring specialized insurers:

Limited Expertise

Bank employees may need to gain the intricate knowledge of insurance agents and brokers focusing on coverage.

Less Flexible Policy Options

Banks often offer less customization, add-ons, and variety than insurance companies.

Customer Support Concerns

Insurance-related support is unlikely to suit banks more strongly than traditional carriers.

While the one-stop-shop concept initially attracts consumers, it could mean settling for ill-fitting policies, inferior service, and compromised coverage.

What Does Chase Bank Have To Offer In Terms Of Life Insurance?

Chase, in partnership with J.P. Morgan, provides clients access to a variety of life insurance solutions including:

Universal Life Insurance

Universal life insurance offers flexible protection that can adapt over time. Policyholders can adjust death benefit amounts and premium payments based on evolving needs. These policies also provide a savings element that allows cash value to accumulate tax-deferred.

Variable Life Insurance

Variable life insurance links returns to market performance, with both the death benefit and cash value fluctuating based on underlying investments. This enables beneficiaries to benefit from potential market gains.

Long-Term Care Riders

Several policies offer long-term care riders allowing access to funds while living if unable to independently perform activities of daily living or suffering cognitive impairment. This provides a pool of money to pay for in-home care, assisted living, or nursing home facility expenses.

Clients have access to dedicated specialists to assist in the complex policy selection landscape. Chase also enables convenient management via mobile apps.

Limitations of Chase’s Insurance Capabilities

While useful for some, Chase’s capabilities are limited compared to dedicated insurers regarding policy variety, flexibility, and support. The bank is expanding its offerings but is currently an intermediary in standard insurance product lines. Those seeking specialized coverage may prefer exploring alternatives over relying solely on Chase.

Additionally, Chase insurance products primarily use general bank employees as intermediaries. While middlemen are okay, you should expect them to be knowledgeable about life insurance. These bankers provide guidance or referrals to partnered insurance companies. The onus then falls on the customer to independently navigate complex policy details, paperwork, and approvals. 

While some clients may feel comfortable dealing with familiar bank representatives, it’s questionable whether those workers have suitable expertise to truly act in your best interest on complex insurance matters. They simply lack the focused experience of dedicated agents and brokers.

Chase’s facilitation process leaves you to handle much of the complexity alone or through overburdened bankers rather than policy experts dedicated to demystifying insurance. Unlike standalone insurers, you need more tailored guidance to make smarter choices amidst technical specifications, legal clauses, and critical coverage considerations.  

Ultimately, Chase’s insurance options provide starter solutions but need to improve in customization and specialization compared to providers concentrating on insurance needs. For those wanting a full-service experience with strong advocacy related to coverage intricacies, knowledgeable companies are exclusively focused on insurance.

What To Look For When You’re Searching For a Policy

With countless insurance companies touting endless policy options, selecting coverage can quickly become overwhelming. However, carefully researching providers using key criteria allows you to make intelligent choices suitable for your situation. As you compare alternatives, be sure to evaluate insurers on:  

Reputation and Financial Strength

An insurance company’s stability and trusted track record offer confidence to deliver services.  

• Reputation – Review ratings from organizations like A.M. Best or Standard & Poor’s along with customer feedback. Avoid poorly-reviewed insurers.
• Financial Strength – Verify financial standing through strength ratings. This indicates an insurer’s ability to pay out claims promptly.  

Coverage Flexibility 

Look for various policy types that enable customization to suit emerging needs over time. Rigid, one-size-fits-all plans may need to be revised to meet your situation as it evolves.

Customer Service Quality

When misfortune strikes, you rely heavily on insurers, so responsive support is critical.  

• Overall Service Reputation – Research reviews and complaints regarding interactions with staff and claims assistance.  
• Communication Channels – Assess ease of contact through client portals, apps, phone lines, in-person, etc.

Staff Expertise 

Specialist skills like being good with analytics and industry knowledge enable companies to assist your circumstances best.  

Competitive Yet Reasonable Rates 

Balancing affordability and value is vital when comparing insurance pricing. Cheapest doesn’t necessarily mean the best coverage.

Proper Licensing   

Verify all insurers operate legally in your state to enable further recourse if needed.  

Claims and Complaints History

Look into real client experiences through claims data and reviews to foresee your experience.

Your Best Option: Liberty Financial Group

Unlike getting coverage through a banking empire like Chase, working with a dedicated provider like Liberty Financial Group offers special advantages thanks to their focused insurance expertise.

As a specialized insurer rather than a jack-of-all-trades financial institution, Liberty maintains an intimate understanding of the insurance terrain that larger banks lack. The company focuses on protection products, allowing it to build deep knowledge across varied policy types.

With expertise embedded firmly in insurance rather than divided across various financial services, Liberty is qualified to take a more nuanced, consultative strategy to individual and family needs. This produces more tailored advice aligned with each client’s unique circumstances, lifestyle, budget, and evolving needs.

More than just salespeople, Liberty’s agents attempt to truly support customers’ best interests when navigating the tricky insurance world. Ongoing specialization in insurance allows Liberty to continue expanding its capabilities to craft holistic, competitive solutions that provide excellent support.

Benefits Of Working With Liberty Financial Group

As dedicated insurance specialists, Liberty Financial Group offers notable benefits compared to large banks like Chase:

Wide Range of Top Insurance Carriers

With access to over 50 top national insurance companies, Liberty provides endless options to find the best policies rather than just pushing proprietary products.  

Custom-Tailored Solutions

Liberty agents take a personalized approach to understanding lifestyles and risk factors. This enables customized packages and budget-conscious solutions versus one-size-fits-all coverage.

Expertise Across Insurance Types  

From home and auto insurance to business, life, long-term care, and disability, Liberty offers both breadth and depth of guidance from seasoned specialists.

Educational Approach 

Liberty aims to fully inform clients on policy specifics so individuals can make empowered choices amidst the fine print.

Savings Opportunities   

Dedicated efforts to shop rates can add up to thousands in savings compared to going direct or through banks.

Dedicated, Experienced Team

Clients can access proven advisors who advocate for their best interests when navigating insurance complexities. Liberty places relationships over transactions.  

By choosing insurance knowledge over banking’s divided focus, you’re setting yourself up with superior guidance and solutions tailored to safeguarding what matters most.

Ready to Secure Your Future with Tailored Our Insurance Solutions?

Connect with Liberty Financial Group Now!

Learn how our expertise in shopping over 50 top insurance carriers can bring you the best coverage at the best price. Be sure to protect what matters most.

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Whether you’re a new business or looking to expand, getting funds is essential to succeed. With that being said, getting a traditional loan isn’t always the easiest, especially for small and medium-sized businesses. That’s where SBA loans come in. 

However, one requirement of SBA loans that trips some business owners up is the need for life insurance. The SBA requires that business owners take out a life insurance policy to cover the loan amount in case of the unexpected.

In this ultimate guide, we’ll give you a rundown of everything you need to know about getting life insurance for an SBA loan. You’ll learn:

• What An SBA Loan Is
• Why Life Insurance is Non-Negotiable for SBA Borrowers
• The Process Of Getting Insurance For Your SBA Loan
• What Amount of Coverage Do You Need
• The Best Types of Life Insurance Policies to Consider
• Tips For Keeping Your Premium Costs Down
• The Best Place To Go For Life Insurance For Your SBA Loan

What Is An SBA Loan? 

SBA loans are programs explicitly designed to help entrepreneurs and small businesses access the funding they need to start, grow, or sustain their companies. SBA itself doesn’t directly lend money – instead, it sets guidelines for lending partners like banks and credit unions. These partners offer the actual funding, with SBA guaranteeing a portion of the loan amount to mitigate the lender’s risk. This makes lenders more willing to offer reasonable terms for small business borrowers, even those with a short credit history or less collateral. 

There are several different SBA lending programs tailored towards different uses and stages of business. The primary 7(a) loan is the most common option for newcomers, offering up to $5 million for any legitimate business purpose like purchasing real estate, equipment, inventory, and more. The 504 program provides between $50 thousand and $5.5 million specifically for significant fixed assets like upgrades to facilities or machinery. Meanwhile, the Microloan program allows new and early-stage businesses to access under $50 thousand at favorable rates. 

Compared to typical commercial business loans, SBA loans offer more flexibility regarding how much you can borrow, longer repayment terms between 10-25 years to keep payments affordable, sometimes lower interest rates, and less stringent requirements regarding credit scores or existing capital. As long as your business plan makes sense and shows an ability to repay, you have a good shot at qualifying.

The catch is that SBA loans require extensive paperwork, financial records, projections, business plans, etc., which helps them thoroughly vet applicants. There are likely to be personal collateral or guarantee requirements as well. It also takes much longer to get funded versus conventional financing, sometimes several months. 

Still, an SBA-backed loan can provide that critical first round of seed funding or fuel to ramp up business operations. For entrepreneurs needing deep pockets or established history, it opens up options that would otherwise be unavailable. As long as you’re willing to take time on the front end preparing your application, an SBA loan may be a strategic move to access intelligent, affordable funding to turn your business visions into reality.

Why Life Insurance is Non-Negotiable for SBA Borrowers 

Getting approved for an SBA small business loan can be complicated, but life insurance is one requirement you absolutely must take into account. The U.S. Small Business Administration acts as a go-between for entrepreneurs and lenders. They facilitate low-interest loans by guaranteeing a portion of the amount borrowed in case of default. In return, they mandate all SBA borrowers carry a life insurance policy for the length of the loan. Here’s a closer look at why this coverage is non-negotiable if you want funding.

The essence of it is that SBA loans represent a significant investment on behalf of private lending institutions. By backing a percentage of that money, the SBA effectively co-signs with the borrower. If the business owner passes away unexpectedly, they want collateral in place to recoup losses for both parties. Life insurance functions as this collateral, delivering outstanding loan balances repaid even after losing a key leader. It transfers risk off the lender and guarantees SBA can recoup their obligation.

Speaking of risk, specific business structures naturally carry more of it in the event of an owner’s untimely death. Entities like sole proprietorships, partnerships, single-shareholder corporations, and single-member LLCs all concentrate decision-making and leadership on one key person. If they are unexpectedly no longer in the picture, the company faces a crisis. The SBA sees this as too much exposure without a life insurance policy to offer continuity of loan repayment if this leader/borrower passes.

The required coverage amount is typically the total sum borrowed. So, for a $500k SBA loan, a policy with a $500k death benefit allows outstanding capital repayment straight from the payout. Term lengths for most SBA-backed loans reach 10, 15, or even 25 years. Policy terms would mirror this. Costs vary dramatically based on age, health, and other individual factors—still, most fall below comparable commercial loan payments.  

Unfortunately, not just any old insurance policy will fulfill SBA insurance requirements. It’s crucial to understand what type they expect before purchasing coverage elsewhere. Key aspects include policy ownership, timing of underwriting, benefit payout procedures, and more. Working with a broker experienced in SBA lending can help navigate these specifics.

SBA loan borrowers agree to substantial oversight and stipulations like insurance coverage in exchange for more accessible funding opportunities. If being a business leader who calls the shots is key to you, this trade-off may be challenging. For those open to added accountability measures, an SBA loan and mandatory life insurance can offer financial doors that otherwise wouldn’t open. First, assessing your options and priorities allows for better-aligning expectations before following this strategic financing approach.

The Process Of Getting Insurance For Your SBA Loan

Getting life insurance to comply with SBA loan requirements involves several pivotal steps. Let’s walk through the basic process to brace yourself for what’s ahead.

Partnering with the Right Agent

An agent in your corner who knows the SBA loan landscape is necessary. They will explain specific policy stipulations, gather important financial documentation to share with carriers and help select proper coverage aligned to your situation.

Choosing a Policy

When scanning through your options, make sure you match the length of your SBA loan term at a minimum for policy duration. If borrowing $500K via a 20-year loan, choose a 20 or 30-year policy so coverage extends the entire liability period. Also, match the policy death benefit to your total loan amount. This guarantees ample payout to repay outstanding balances if the unexpected occurs.

Completing the Application

Be ready to put in work completing piles of paperwork as part of the application process. From gathering tax returns, financial statements, business documents, and anything supporting your eligibility for the needed coverage. A thorough assessment of health and lifestyle factors determines approval terms and premium costs, so expect to provide private medical history during underwriting.

Undergoing Medical Review

Medical checks may require a complete exam or bloodwork, depending on your age, health background, and other variables. This gives the insurance company a clear picture of risk factors before providing coverage.

Staying On Top of Payments

Once approved, don’t let payments slip through the cracks. Skipping premium dues risks the policy’s lapse, which violates SBA requirements. Auto-pay options can safeguard you here. Review statements regularly and follow up quickly on late notices to rectify any issues. Keep communication open with your agent so coverage always stays active.

The process feels tedious at first glimpse. Nonetheless, embracing life insurance as an essential piece of your SBA loan experience levels the playing field to access funding that propels your entrepreneurial goals. Put in the work upfront and maintain diligence after that, and this requirement checks itself off the list.

What Is The Best Type of Life Insurance For an SBA Loan?

As a necessary collateral requirement for SBA loans, life insurance takes more forethought than consumer policies. Certain coverage types fit better than others for these specialized business financing programs. Whether an entrepreneur, small firm owner, or any entity needing a loan, read on for factors guiding appropriate policy selection.

Term Life Insurance

This frugal option provides pure death benefit protection for a defined period. Term lengths span 10, 20, or even 30 years for longer loan repayment schedules. High coverage amounts are accessible even on tight budgets. This checks the key boxes of aligning with loan terms at affordable premiums while guaranteeing payout to cover balances should the borrower pass prematurely.

The plainness and clear coverage window of term life insurance makes it appealing for tying directly to SBA loan liability periods. Agents set you up with quotes ranging from as low as $30 monthly upwards based on age, health, and other attributes. 

Key Person Life Insurance

Key person life insurance policies add a valuable layer of protection for businesses bearing more risk around the unexpected loss of leadership or revenue generators. This type covers vital employees or owners whose talent and productivity directly fuel business performance. Losing them can cripple operations.

These policies pay out upon death to the business, providing working capital funds to handle fallout like hiring replacements, covering lost sales, and filing other transitions. When tied to SBA loans, they offer extra assurance regarding the continuity of loan repayment, even if the main decision-maker passes away unexpectedly early on.

Things To Take Into Consideration When Shopping For a Life Insurance Policy 

As an essential piece in securing SBA backing, shopping for the right life insurance requires more due diligence. Beyond checking the coverage requirement box, strategic policy selection better protects your interests as much as the lender’s investment when tied to your financing terms.

Consider the following areas when assessing options (some may be repeated from above, but seeing everything together is vital so you have everything down pat. 

1. Policy Value Alignment: The central rule here is your policy’s death benefit must meet or exceed the total amount borrowed. If your cleaning company secures a $350K SBA loan to open your third brick-and-mortar shop, your life policy minimum is $350K as well. This guarantees ample payout to repay outstanding balances if the unexpected strikes.
2. Timing Matters: Ideally, have coverage pre-approved before loan closing documents are finalized. This shows good faith to cover their stakes while proactively managing risk on your end, too. No matter what, make sure the policy’s effective start date precedes loan fund distribution into your commercial account.
3. Collateral Assignment: This bit of paperwork essentially gives the lender first dibs on a portion of the payout equal to your remaining loan balance if you pass away. So of a $350K policy, $250K routes to the lender if that’s the outstanding principal. The remaining monies are funneled to other listed beneficiaries like family.
4. Loan Term Alignment: Not only does the money have to match, but the length of your life insurance policy must also match the SBA loan when selecting policy terms. Typically, they span 10, 15, 20, or even 30 years. Elect a term or permanent life policy lasting the full liability period so protection runs the duration should the unexpected strike early on.
5. Meet All Lender Rules: Outside of mirrored death benefits and durations, the lender may impose extra requirements like guaranteed renewability, waiving premium payments if disabled, naming conventions, assignment forms, and more. Lean on your insurance agent’s expertise here to guide carrier policies eligible for SBA collaborations.

Choosing the Best Life Insurance Company for Your SBA Loan

Selecting the right life insurance company for your SBA loan is vital to getting affordable, compliant coverage. As you evaluate carriers, focus on these aspects:

Reputation and Customer Service

Prioritize insurers with longstanding reputations for transparent processes and responsive support. Check ratings on sites like BBB for insights. It’s a bonus if they have dedicated teams catering to small business clients.

Product Offerings

Look for a broad range of term life policies that align with various SBA loan terms and coverage amounts you may need now or later. Having growth-oriented options built around converting terms or raising benefits helps, too.

Underwriting Process

Expect to provide financial records and medical history, but ensure the application and underwriting steps are straightforward. Carriers with automated underwriting offer faster decisions.

Cost and Affordability

Assess both premium costs upfront and policy price changes over time. Term life rates locked for the coverage term regardless of health changes offer predictability. Compare similar policy quotes across highly rated carriers.

Licensing and Regulation

Opt for established, reputable insurance carriers regulated at the state and federal levels. This guarantees sufficient financial backing, and consumer protections stand behind the policies they underwrite.

Policy Flexibility

Since SBA guidelines evolve, seek carriers that keep policy options adaptable to regulatory or lending partner requirements changes. This provides extra assurance around long-term compliance.

SBA Loan Experience

Leading insurers with specialized experience insuring SBA borrowers take the guesswork out of the equation. Their application materials, underwriting, and beneficiary payout procedures cater to this unique loan-linked coverage need.

Choose Liberty Financial Group for Your SBA Loan Life Insurance Needs

At Liberty Financial Group, we understand the unique insurance necessities of SBA loans. We’re determined to be the best fit for your SBA loan life insurance needs. Here’s why:

• Extensive Carrier Network: We partner with over 50 top insurance carriers, assuring you have access to the best SBA loan life insurance policies available in the market.
• Custom-Tailored Insurance Solutions: Acknowledging that every business has unusual needs, we offer personalized SBA loan life insurance plans that align perfectly with your needs and budget.
• Unbiased and Client-Focused Service: Our promise is to you, not the insurance carriers. We provide honest, impartial advice to find the best insurance solution for your needs.
• Expertise in Diverse Insurance Products: With our vast experience in life insurance, long-term care, and more, we bring a thorough understanding of insurance to the table, guaranteeing your SBA loan is backed by a robust and reliable life insurance policy.
• Dedicated Support and Education: We go above just selling policies. Our team is here to educate and advise you through the complexities of SBA loan life insurance, ensuring you make informed decisions.

Contact us today at Liberty Financial Group to explore how we can secure your SBA loan with the right life insurance coverage tailored exclusively for you.