We help consumers secure the life insurance requirement for their SBA loans quickly and at the lowest cost possible. We’ll also help you get the policy collaterally assigned quickly, so you can get your funding quicker.
Why Do SBA Loans Require Life Insurance?
SBA loans are term loans offered by banks or lending institutions that are guaranteed up to 80% of a loan’s principal, or the substantial amount of the loan. Government loans are often inaccessible to many due to the high financial risk they pose. If too many people don’t pay back their loans, the government could find itself in serious financial trouble. SBA loans are accessible and have figured out a way to reduce lender risk by tying the loan to something most families already need: life insurance.
Life insurance is the simplest form of collateral: in assures that your loan will be paid off with minimal impact to your family. Other forms of collateral could include your stocks, bonds, savings, land, real estate holdings, or any machinery you own. In some cases, families will be forced to take on debts and sell what they can to pay them. An SBA loan insures that your family is protected, as well as the lender’s interest.
What you should know about SBA Loans
Life insurance for SBA loans seems simple and straightforward, but can be tricky if you don’t stay on top of it. For example, your beneficiaries should be specified at the time your purchase the life insurance.
Find the Best Policy for Your SBA Loan
Finding the proper life insurance policy to cover your SBA loan and to protect your family will require the help of a trained and knowledgeable agent, particularly if you aren’t in the best health.
Because our agents specialize in working with life insurance for SBA loans, they can help set up your collateral assignment form, making sure it is up-to-date and that your money is going where it should