Insurance-Backed Line of Credit (IBLOC) for Universal Life Insurance

An innovative option to meet liquidity needs.

The IBLOC for universal life and indexed universal life insurance can provide clients with access to liquidity while allowing them to retain their assets and portfolio investments.^1-3 Our streamlined application process promotes timely access to funding for almost any cash need.⁴

Credit Limit:

Up to 95% of the cash value of an eligible universal life or indexed universal life insurance policy with a minimum credit line of $75,000.^5,6

Flexible Terms and Conditions:

Available to individuals, trusts and businesses (no income verification), competitive rates and terms, no application fees or closing costs⁷, easily request credit limit increases.⁸

1. Subject to credit approval and underwriting.

2. Policy must be in effect for at least 12 months at the time of credit application. Line of credit is contingent on life insurance policy remaining in good standing. The insurance policy owner must be the borrower. Insurance policy must be issued by one of the following approved insurance providers to be eligible as IBLOC collateral: Guardian, MassMutual, Northwestern Mutual, NY Life, John Hancock, Penn Mutual, Ameritas Life Insurance Corp, Security Mutual Life.

3. There may be an adverse tax consequence when pledging the policy and as such, we strongly advise consulting with a tax advisor before pledging the policy as collateral for a loan.

4. The IBLOC cannot be used to purchase securities or to pay off a margin loan that was used to purchase securities.

5. Minimum requested amount must be $75,000.00 or such greater amount as may be prescribed from time to time pursuant to 12 C.F.R. Section 1026.3(b) of Regulation Z issued by the Consumer Financial Protection Bureau as the minimum threshold necessary to qualify the Line of Credit as an exempt consumer credit transaction thereunder.

6. Collateral Lending Value is an amount equal to the sum of the then cash surrender value of the policy to which the pledgor is entitled, multiplied by such percentage as The Bancorp Bank, N.A. ("Bank") may determine in its discretion, not to exceed ninety-five percent (95%).

7. The Bank does not charge an application fee. State, local and/or third-party fees may apply in some states.

8. For an IBLOC secured with a universal life or indexed universal life insurance policy, annual reviews will be completed to determine eligibility for credit limit increases.