The Small Business Administration (SBA) requires life insurance to collateralize its loans and will not fund a loan until coverage is in force. With PIU’s Business Bank Loan Life program we can generally get large limits of life insurance in force in 24 hours. No medical exam is required. The only underwriting requirements to issue this coverage are a 1 page application, a copy of the bank loan document, and the premium. We were able to solve 3 different cases last week that all had their SBA loans in jeopardy because they could not get their life insurance solved.

Case 1: $2,000,000 on a 35 year old male who in early 2008 entered into drug rehab program.

Case 2: $750,000 on a 40 year old male who had high liver enzymes so the traditional carriers were postponing his coverage. He needed the SBA loan for his business so postponing the life insurance was not an option for him.

Case 3: $1,000,000 on a 45 year old female. She was afraid of needles so was not willing to take a blood test for traditional life coverage.

Case 4: We issued a $1,000,000 policy for a 60 day term which allowed the loan to fund on the effective date of the policy. Then, 50 days into the policy term the client was able to get life insurance through a traditional carrier. This allowed the company/insured to have their funds 50 days before they would have if they did not buy our coverage.

We have plans to put similar coverage into force while your applicants are going through underwriting with the traditional life market. We can issue a policy for as short a period of time such as 30, 60 or 90 days, which will allow them to fund their loan while they are still in underwriting.