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

Access liquidity while keeping assets intact.

You can meet your planned or emergency cash needs without selling portfolio assets or taking out conventional loans. Instead, with an IBLOC, you can access an interest-only revolving line of credit for a variety of uses.1-3 The IBLOC’s automated application process promotes timely liquidity, so you have cash on hand when you need it most.

Credit Limit:

Up to 95% of the cash value of an eligible whole life insurance policy with a minimum credit line of $75,000.4,5

Flexible Terms and Conditions:

Available to individuals and trusts (no income verification), can be based on multiple life insurance policies6, competitive rates and terms, no application fees or closing costs7, easily increase credit limit.8

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

2. Subject to credit approval and underwriting.

3. An IBLOC cannot be used for the purchase of securities or to pay off a margin loan that was used to purchase securities.

4. 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%).

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. The insurance policy owner must be the borrower.

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

8. No credit limit increase is permitted within one-hundred-eighty (180) calendar days of the loan origination date. Maximum number of credit line increases is two (2) within a twelve-month period. Other terms apply.

Potential Uses

city icon  Real estate investment

hammer icon  Home improvements

pie chart icon  Business investments/costs

arrows inward icon  Debt consolidation

form icon  Taxes

graduation cap icon  Tuition

check icon  Other liquidity needs3

Securities-Backed Line of Credit (SBLOC)

An SBLOC is a low-cost alternative to traditional loans when liquidity needs arise.

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Insurance-Backed Line of Credit (IBLOC)

The IBLOC provides funding based on the cash value of select whole life insurance policies.

Learn more

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