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If you recently applied for a business loan, especially an SBA loan, you might need to
get a life insurance policy. In this video, I'm going to give you some tips.
So you may have recently applied for a loan, especially a loan through the SBA, the small
business administration, and didn't realize that one of the requirements would be for
you to have a life insurance policy. This would be so that if something were to happen
to you, the SBA or the lender would get their money back on the loan. Makes sense. So what
are some tips, what are some things you can do to speed up the process. Most business
owners that I meet want to get that loan in place as soon as possible. So if you are in
that situation what I'd recommend is look for a no medical life insurance policy. With
a no medical life insurance policy the underwriting time is much faster.
Let's talk a little bit about the underwriting process. The underwriting process with a traditional
life insurance policy requires you to get a medical exam. The insurance company very
well many times orders your doctor's records. This can take anywhere between a month, and
sometimes two months. Sometimes I see it go even longer if the doctor takes time to get
your medical records to the insurance company. So this can certainly be a lot of time, and
time is money in your business. So what are some options?
Well, one option is to get a no medical life insurance policy and there are some insurance
companies out there that can approve you in as little as one to two days, you get your
policy and the pricing is still very very competitive.
The other type of policy you can get where the prices are a little bit better is a no
medical life insurance policy, that doesn't require a physical exam but the insurance
companies will still go to your doctor to get records. This will keep your costs lower
than the one to two day policy, but the underwriting time will be still less than a traditional
policy. The underwriting time is usually 3-4 weeks instead of possibly six weeks so you're
going to get your policy still faster, and you're going to be able to save some money.
If time is not a factor than having a physical and going through the full underwriting process
will be your best best, because that's going to be typically your least expensive option.
So typically when people are getting loans from banks they're not for a very very long
time, so people are typically looking for 10 year term polices, so that's what I would
advise you to get because that's going to cover the amount of the loan.
What you would do is, you would do something called a collateral assignment, which I would
help you do. What does that mean? That means that once you get your policy, I help you
fill out a form with the insurance company which will put that policy as collateral for
the loan, and that will fulfill the bank's requirements. So I will help you through the
process of fulfilling the bank's requirements so that you can get your loan. I have experience
working with people that are looking for life insurance specifically to cover a loan, and
so if you are in that situation, you can give me a call, my phone number is 800-574-0245,
also visit the site Chooseterm.com and fill out a quote request form and I can help you
get a life insurance policy which will satisfy the bank's or the lender's requirements, or
the SBA's requirements so that that policy could be collateralized for your loan and
then you can get approved for your loan as soon as possible. I look forward to speaking
with you. Thank you.