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.
This is renewable every 3 years including full insurance underwriting each time and a one time origination fee based on the size of the loan which can be rolled up, again on a non-recourse basis. A good analogy for comparison would be a home equity line of credit, or possibly even better, a reverse mortgage.
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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