I would like to know want banks are the ones that lend you money with life insurance collateral...I have Primerica life insurance, can anyone help me....
Total Comments: 6
Posted: Tue Jul 13, 2010 02:38 am Post Subject:
If pledging a term policy, it's not exactly the same idea of collateral as posting say your car's equity for collateral. In fact, often times it won't work with just a term policy.
Posted: Tue Jul 13, 2010 04:00 am Post Subject:
I would like to know want banks are the ones that lend you money with life insurance collateral...I have Primerica life insurance, can anyone help me....
Sure. Step number one is to replace the Primerica policy if you're still healthy.
Posted: Tue Jul 13, 2010 05:07 pm Post Subject:
If your remaining term policy duration is longer than the loan duration, it's possible that a bank would accept a "collateral assignment" of the death proceeds as collateral. However, they would probably be more interested in obtaining a collateral assignment on a policy with actual cash value equal to or exceeding the loan amount.
Other than the fact that your Primerica Life Insurance Co. term policy premiums may be somewhat higher than a comparable policy from another carrier, there may not be any other reason to simply replace one policy with something else. But as dgoldenz has said, if you're still healthy and insurable . . .
Posted: Thu Jul 15, 2010 08:42 am Post Subject:
It can be difficult to obtain adequate debt financing for a small business. Creditors will often require the business owner to personally guarantee a loan. The death of the business owner or another key executive may cause creditors to demand immediate repayment of outstanding business debts.
This can place a significant burden on the business and force the liquidation of key business assets at fire sale prices at a time when business results may already be severely impacted by the death. In addition, if the business owner has personally guaranteed the debts incurred by the business, the owner or the owner’s estate may be liable for any outstanding debts that the business is unable to pay.
_________________________ Fast Cars Engines | Business Books
Posted: Thu Jul 15, 2010 04:58 pm Post Subject:
Yes, jackson789, what you've said is all true. What you have said is the basis for recommending life insurance to cover the need.
The OP's question concerns obtaining capital through the use of collateralized life insurance. If the OP is healthy, and appears likely to be able to repay the debt, their bank may very well be interested in taking a collateral assignment on a life insurance policy as a "just in case" safety net. Term life is less useful for this purpose than a cash value policy.
Posted: Tue Jul 13, 2010 02:38 am Post Subject:
If pledging a term policy, it's not exactly the same idea of collateral as posting say your car's equity for collateral. In fact, often times it won't work with just a term policy.
Posted: Tue Jul 13, 2010 04:00 am Post Subject:
I would like to know want banks are the ones that lend you money with life insurance collateral...I have Primerica life insurance, can anyone help me....
Sure. Step number one is to replace the Primerica policy if you're still healthy.
Posted: Tue Jul 13, 2010 05:07 pm Post Subject:
If your remaining term policy duration is longer than the loan duration, it's possible that a bank would accept a "collateral assignment" of the death proceeds as collateral. However, they would probably be more interested in obtaining a collateral assignment on a policy with actual cash value equal to or exceeding the loan amount.
Other than the fact that your Primerica Life Insurance Co. term policy premiums may be somewhat higher than a comparable policy from another carrier, there may not be any other reason to simply replace one policy with something else. But as dgoldenz has said, if you're still healthy and insurable . . .
Posted: Thu Jul 15, 2010 08:42 am Post Subject:
It can be difficult to obtain adequate debt financing for a small business. Creditors will often require the business owner to personally guarantee a loan. The death of the business owner or another key executive may cause creditors to demand immediate repayment of outstanding business debts.
This can place a significant burden on the business and force the liquidation of key business assets at fire sale prices at a time when business results may already be severely impacted by the death. In addition, if the business owner has personally guaranteed the debts incurred by the business, the owner or the owner’s estate may be liable for any outstanding debts that the business is unable to pay.
_________________________
Fast Cars Engines | Business Books
Posted: Thu Jul 15, 2010 04:58 pm Post Subject:
Yes, jackson789, what you've said is all true. What you have said is the basis for recommending life insurance to cover the need.
The OP's question concerns obtaining capital through the use of collateralized life insurance. If the OP is healthy, and appears likely to be able to repay the debt, their bank may very well be interested in taking a collateral assignment on a life insurance policy as a "just in case" safety net. Term life is less useful for this purpose than a cash value policy.
Posted: Sat Jul 17, 2010 08:57 am Post Subject:
Thanks for sharing, really good post.
Great information thanks for post.
Penny Stocks
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