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Term Life Insurance Helps With SBA Applications

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Apply Now!

The Small Business Association has always played an essential role in helping new and existing small businesses obtain working capital due to its special relationship with major lenders.  The SBA loan program can help you secure the funding you need to purchase new equipment, increase your inventory, expand your market reach, and so much more.  The process of obtaining an SBA loan involves a unique relationship between the SBA itself and a bank or lender.  In order to secure approval for an SBA loan, you will be required to offer an asset up for collateral to the bank.  This collateral is often a life insurance policy.  While life insurance policies can take weeks to acquire, advances in medical underwriting allow for companies like ours, My Life Insurance Specialists, to help people apply, and if approved, obtain a Term Life Policy in minutes!  

Term Life for SBA Loans Simply Make Sense

For those of you who may not know, a Term Life Insurance policy is one of the most affordable types of life insurance.  For example, a healthy 35-year-old female that is approved can obtain $500,000 dollars’ worth of coverage over a 20-year term for as little as $25 dollars per month!  

When securing an SBA loan, using a term life policy as collateral is the path of least resistance financially.  

The Term and the Coverage Amount Should Match the Loan Request

This is fairly straightforward.  Let’s say you are applying for an SBA loan of $200,000 dollars payable over 10 years.  In order to qualify you will need to take a 10-year term policy with a death benefit of $200,000.  For the same healthy 35-year-old in the example above, this would equate to a monthly premium payment of around $10 dollars.  

It’s important that you not miss any premium payments

In order for the term life policy to stay “in-force”, make sure that you pay your monthly premiums.  If you are using automated monthly payment, be certain that the account that is drawn from has enough to cover the monthly premium for failing to do so could result in a violation of your agreement with the lender.

Why the Bank Needs You to Have a Term Life Policy

SBA loans are different from traditional bank loans.  The power of the SBA allows both the SBA and the bank to share the risk should someone default on the loan.  In one sense, the SBA is backing you and your business in the process.  Should something happen to you during the course of paying back the loan, the bank needs to be guaranteed to get their money back.  This is where the Term Life policy comes in.   It protects the loan from the bank should you pass away during the term of the loan.  A collateral assignment will be required that assigns the benefit of the life insurance policy to the bank in the amount that is still owed. The remainder of the benefit will go to the named beneficiary. The amount owed on the note will decrease over time, allowing the named beneficiary’s benefit to increase.

Fast, No-Exam Term Life Insurance Is the Answer

Now that the technology exists to obtain a term life policy in less than 15 minutes once you are approved, there is no reason not to take advantage of the convenience.  There are no medical exams required which means no lab work, urine samples, no needles.  It is as simple as selecting your term, your coverage amount, and accurately filling out an application.  Once approved, you will be good to go and get your SBA loan.  

So, What Are You Waiting For?

My Life Insurance Specialists utilizes online term life products from Bestow, a leader in the online term life industry.  If you want to see which term policies you qualify for and how much they cost, simply click here.  It only takes a few minutes and you will be on your way to securing the capital you need to grow your business!

 

Apply Now!
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Women Have the Most to Gain With Living Benefits Life Policies

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Modern life insurance has evolved beyond the death benefit.  While still at the heart of most policies, the industry has chosen to focus just as sincerely on the policyholder while they are still alive.  The truth is, the needs we have in the later years of our life can be financially burdensome as well as medically complicated.  For women, who outlive men by an average of 6 years, the ‘Golden Years’ can tarnish quickly.  Fortunately, there are fantastic life insurance tools designed to be obtained simply online that can offset some of the burden associated with needing long-term care for you or a loved one.  There are also vehicles to help you maintain a cash positive lifestyle despite any ailments that come your way.  Due to their inherent longevity, women are more likely to require long-term care than men.  For this and many other reasons, women have the most to gain with Living Benefits life policies.

What Are Living Benefits?

A living benefit refers to an insurance policy or rider on an insurance policy that allows for the policyholder to make use of funds (accumulated cash value or death benefit amount) for needs that arise while they are still alive.  These riders are typically added to a permanent life policy such as an Indexed Universal Life policy as a chronic and critical illness rider.  Such a benefit allows the policyholder to draw funds from their death benefit to pay for prolonged medical care should they fall ill. 

The Importance for Women Having a Living Benefits Policy in Place: By the Numbers

In the United States, an estimated 58% of women age 65 and older will need long-term care during their lifetimes.  That is compared to 47% for men in that age group.  The average cost of care options in the U.S. is already high and is expected to continue to increase over the coming years.  Here is a rundown of the monthly costs for various care options:

  • $4,576 monthly cost for a Home Health Aide
  • $4300 monthly cost for an assisted Living Facility
  • $7,756 monthly cost for a Semi-Private Room in a Nursing Home

Health insurance alone will not cover these expenses, combo life insurance policies that include a chronic and critical illness rider can give the policyholder more financial freedom during a challenging part of their life.  For women, who will outlive their male counterparts and whom more than half will have some need for care as they age, a policy like this can be the difference between security and poverty.  The difficult reality is that women over the age of 65 are also more likely to experience poverty than men.  While many things factor into that statistic including wage gaps and lifespan, the need for medical care is old age is a key metric. 

Indexed Universal Life Policy with a Chronic and Critical Illness Rider: Flexibility and Protection

Indexed Universal Life Policies (IULs) provide coverage for the duration of your life (even if you live to be 100) and they are known for the flexibility they provide.  An IUL is all about the power of choice.  The policyholder chooses which market index (such as the S&P 500) they want their premiums to track with, they choose the death benefit and the amount that they want to contribute to the cash accumulation portion of their policy within the allowable guidelines. 

The beauty of an IUL is that while your cash is growing along with the market, there is a floor in place should the market crash.  You will not lose your premium investment. Your cash can only grow or stay put, but it won’t diminish.  No Pain.  All Gain.  Being Prepared is Gender Agnostic.

Everyone who is able should want to be prepared for the unexpected circumstances life can throw at them.  When it comes to life insurance, however, men own more policies than women even though women account for the majority of the elderly population.  Being financially secure to cover the high costs of prolonged care will allow you to make the best of your later years.  An IUL with a chronic and critical illness rider will allow you to benefit from living. (Putting the LIFE back in life insurance.)

Modern life insurance has evolved beyond the death benefit.  While still at the heart of most policies, the industry has chosen to focus just as sincerely on the policyholder while they are still alive.  The truth is, the needs we have in the later years of our life can be financially burdensome as well as medically complicated.  For women, who outlive men by an average of 6 years, the ‘Golden Years’ can tarnish quickly.  Fortunately, there are fantastic life insurance tools designed to be obtained simply online that can offset some of the burden associated with needing long-term care for you or a loved one.  There are also vehicles to help you maintain a cash positive lifestyle despite any ailments that come your way.  Due to their inherent longevity, women are more likely to require long-term care than men.  For this and many other reasons, women have the most to gain with Living Benefits life policies.

What Are Living Benefits?

A living benefit refers to an insurance policy or rider on an insurance policy that allows for the policyholder to make use of funds (accumulated cash value or death benefit amount) for needs that arise while they are still alive.  These riders are typically added to a permanent life policy such as an Indexed Universal Life policy as a chronic and critical illness rider.  Such a benefit allows the policyholder to draw funds from their death benefit to pay for prolonged medical care should they fall ill. 

The Importance for Women Having a Living Benefits Policy in Place: By the Numbers

In the United States, an estimated 58% of women age 65 and older will need long-term care during their lifetimes.  That is compared to 47% for men in that age group.  The average cost of care options in the U.S. is already high and is expected to continue to increase over the coming years.  Here is a rundown of the monthly costs for various care options:

  • $4,576 monthly cost for a Home Health Aide
  • $4300 monthly cost for an assisted Living Facility
  • $7,756 monthly cost for a Semi-Private Room in a Nursing Home

Health insurance alone will not cover these expenses, combo life insurance policies that include a chronic and critical illness rider can give the policyholder more financial freedom during a challenging part of their life.  For women, who will outlive their male counterparts and whom more than half will have some need for care as they age, a policy like this can be the difference between security and poverty.  The difficult reality is that women over the age of 65 are also more likely to experience poverty than men.  While many things factor into that statistic including wage gaps and lifespan, the need for medical care is old age is a key metric. 

Indexed Universal Life Policy with a Chronic and Critical Illness Rider: Flexibility and Protection

Indexed Universal Life Policies (IULs) provide coverage for the duration of your life (even if you live to be 100) and they are known for the flexibility they provide.  An IUL is all about the power of choice.  The policyholder chooses which market index (such as the S&P 500) they want their premiums to track with, they choose the death benefit and the amount that they want to contribute to the cash accumulation portion of their policy within the allowable guidelines. 

The beauty of an IUL is that while your cash is growing along with the market, there is a floor in place should the market crash.  You will not lose your premium investment.  Your cash can only grow or stay put, but it won’t diminish.  No Pain.  All Gain. Being Prepared is Gender Agnostic

Everyone who is able should want to be prepared for the unexpected circumstances life can throw at them.  When it comes to life insurance, however, men own more policies than women even though women account for the majority of the elderly population.  Being financially secure to cover the high costs of prolonged care will allow you to make the best of your later years.  An IUL with a chronic and critical illness rider will allow you to benefit from living. (Putting the LIFE back in life insurance.)