The process of obtaining life or disability insurance for a business loan can be a bit tricky and should not be confused with the process that is needed to obtain life insurance for other personal or business purposes. Often there is a closing deadline, which necessitates a sense of urgency for all parties helping the borrower to fulfill the life and/or disability insurance requirement.
Not every carrier can fulfill the Lender’s life insurance requirements, whether that’s due to product limitations, underwriting guidelines, or collateral assignment issues. Not every agent can secure the Lender’s life insurance requirements in a timely manner due mainly to lack of familiarity with the loan closing process.
For these reasons (and more), it is important that borrowers engage with an insurance agent who is well versed in the nuances of obtaining life and disability insurance quickly and compliantly in order to mitigate the risk that this important requirement will cause a delay for closing. This, of course, is where we can help:
Broad Street Financial’s Value Proposition
Specialty and focus in working with SBA Lenders and their Borrowers to help with life and disability policies are secured without delay for closing, and that policies remain in good standing in order to protect all parties.
SBA Background: We can speak your borrowers’ language.
National Practice: Full service to borrowers across the country.
Assignment Delays are a thing of the past: Collateral Assignment recorded at the time of policy approval, which means no trailing delays/paperwork.
Extensive experience means good relationships with Underwriters and service teams which can further expedite the process. We know how/when to pivot on a difficult case.
Accountability: To the executives, loan officers, closers, underwriters, brokers and other lending professionals that we support.
Non-Captive: Ability to work with the carriers best positioned to get our clients to the closing table.
Medical Records: Large reason that life insurance gets delayed. A streamlined process has been established to work with borrowers’ physicians directly to ensure records are sent as quickly as possible.
MassMutual provides duplicate premium bills & reminder notices to further collateral protection at the carrier level.
A program designed to benefit lenders and their borrowers when life insurance is required as collateral for a business loan. Lenders and borrowers across the country respond positively to QuickClose because time is money.
Our usual 7-10 business day turnaround enables the lender to issue loans much faster if the borrower uses our services instead of standard underwriting processes.
QuickClose is an expedited underwriting service that can process a life insurance policy when life insurance is required to cover the risk of a business loan. Through a streamlined new business process, the required life insurance policy is provided within 7 to 10 business days from the point in time all the paperwork is received in good order, subject to full underwriting.
*QuickClose is not a guaranteed issue program. Policies may be rated or declined.
Benefits To The Lender
Issue loans faster and earn interest sooner. Enhance standing with business clients who will appreciate the easy, quick process for obtaining required life insurance.
No additional costs. No trailing paperwork as the collateral assignment is included with the policy. Receive duplicate premium bills and reminder notices to help comply with SBA Right-to-Cure requirements. Speed and convenience are competitive advantages that the lender can promote to local businesses.
Benefits to the Borrower
Access to agents who understand the life insurance and loan closing process, including but not limited to satisfying collateral assignment requirements of the Lender.
Get to the closing table sooner. Quality is not sacrificed for speed.
Access to high-quality life and disability insurance products.
Access to QuickClose and other expedited underwriting programs at no extra cost.
Program Eligibility Specifications
All insurance business written on any commercial loan through any commercial lender meeting the following requirements:
Life insurance is required as collateral for a business loan.
Policy Size Limits: Face amounts up to, but not including, $10,000,000.
A commercial lender or qualified non-bank Small Business Administration (SBA) lender must issue the loan.
Premium Size Limits: Premium amounts less than $100,000.
The policy is collaterally assigned to the lender.
Products Available: Whole Life, Term, Variable Life, Universal Life (Survivorship products are not available).