Life Insurance for SBA Loans

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Talk to an agent today about obtaining term life insurance coverage for an SBA loan.

Key Man Life Insurance
Life Insurance for SBA Loans

Life Insurance for SBA Loans

If you’re gone, key person life insurance can help offset the costs of recruiting, hiring, and training a successor to your position. This allows your company to transition smoothly and won’t take away from valuable time and profits necessary to keep a business running.

What Are SBA Loans

What Are SBA Loans?

Key man life insurance is not a stand-alone policy, and you will need a personal policy to provide financial stability for your family. However, key man life insurance can help protect your family after you’re gone.

 

Why Do SBA Loans Require Life Insurance

Why Do SBA Loans Require Life Insurance?

SBA loans are term loans offered by banks or lending institutions that are guaranteed up to 80% of a loan’s principal, or the substantial amount of the loan. Government loans are often inaccessible to many due to the high financial risk they pose. If too many people don’t pay back their loans, the government could find itself in serious financial trouble. SBA loans are accessible and have figured out a way to reduce lender risk by tying the loan to something most families already need: life insurance.

Life insurance is the simplest form of collateral: in assures that your loan will be paid off with minimal impact to your family. Other forms of collateral could include your stocks, bonds, savings, land, real estate holdings, or any machinery you own. In some cases, families will be forced to take on debts and sell what they can to pay them. An SBA loan insures that your family is protected, as well as the lender’s interest.

 

What you should know about SBA Loans

What you should know about SBA Loans

If you’re gone, key person life insurance can help offset the costs of recruiting, hiring, and training a successor to your position. This allows your company to transition smoothly and won’t take away from valuable time and profits necessary to keep a business running.

Life Insurance for SBA Loans

Find the Best Policy for Your SBA Loan

Finding the proper life insurance policy to cover your SBA loan and to protect your family will require the help of a trained and knowledgeable agent, particularly if you aren’t in the best health.

 

Because our agents specialize in working with life insurance for SBA loans, they can help set up your collateral assignment form, making sure it is up-to-date and that your money is going where it should

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When purchasing life insurance, we always want to choose the coverage amount that will be most useful to our family and loved ones in the future. When we wish to begin the application process for any type of life insurance, however, there are various factors to consider.

At My Term Life Guy, we assist each individual or family in determining the best plan for their needs. We understand that, in many circumstances, a person’s health status might be a barrier to getting traditional life insurance at a reasonable price. In order to receive a plan that offers good coverage, most life insurance companies require a medical exam. The truth is that undergoing a physical exam may be counterproductive if you are looking for a cost-effective plan with enough coverage in the future.

Even if one’s current health is strong, one’s lifestyle or previous illnesses can have an impact on future final expense insurance. If you are not a regular exerciser, a smoker, or have had a significant illness, it is conceivable that the life insurance company may not offer you the plan that you desire. If you also try to hire a policy that offers a lot of coverage while also not having a good medical history, the cost may end up being too high.

Although obtaining life insurance without a physical exam can be pricey, at My Term Life Guy, we will do everything we can to find the best insurer offer for you. The best part about working with us is that we will strive to put ourselves in your place in order to propose the best solution for you, whether it is term life insurance or guaranteed issue life insurance. Furthermore, you will not be required to pay anything to begin the application process, allowing you to compare quotes from several types of life insurance to determine which one is best for you.

You can obtain a quotation by filling out our online form. Please do not hesitate to contact one of our insurance agents if you have any questions!