Calling all policy holders, trustees, financial, legal and other estate planning advisors...
Best Ideas Group, Inc. (BIG) can now refer to a lender which will provide a non-traditional line of credit secured only by life insurance policies.
The ideal candidate fits these basic parameters:
How is the BIG arranged line of credit so different from traditional premium financing?
Life insurance policy owners who seek additional liquidity and wish to keep their policies now have a third option with BIG.
Option 1 – Surrender
Surrender the policy to the life insurance company for its CSV.
Option 2 - Sell
Sell the policy on the life settlement market and receive a higher price than its CSV, but multiple intermediaries’ fees reduce payment to the policy owner.
Option 3 – BIG Arranged Transaction
Without selling or surrendering your policy, you can keep your policy and receive either an immediate non-recourse loan or a standby line of credit commitment for up to a 3 year draw down option with only the future life insurance death benefit as the only collateral on a “use it or lose it” basis.
Renewable every 3 years. Includes full insurance underwriting to determine maximum loan value (FMV), a minimum underwriting fee of $1,000, or 10 BP (.001) of policy face value, whichever is more. A good analogy, but with a lot more current and future risk, is a full-recourse home equity line of credit. Although your home becomes the primary source of collateral, your full recourse obligation can theoretically exceed same if market conditions turn unfavorable.
What other services can BIG arrange on behalf of trustees and individuals to optimize their policies as investments and estate planning tools?
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