• Barry Fisher

What Do SBA Loans & Life Insurance Have in Common?


If you’ve ever applied and been approved for an SBA loan, you probably know the answer to this question. Generally speaking, the Small Business Administration requires borrowers (company owners) to purchase life insurance so the loan will be paid off in the event of their untimely death. Term life insurance is generally the answer, and the policy is collaterally assigned to the lender which means that a portion of the policy’s death benefit will settle the balance of the loan due. Any excess death benefit will be paid to beneficiaries of the policy.


Simple enough, but not applying for life insurance when you initiate your SBA loan application can delay getting the loan funded, for two reasons:


1. Life insurance, just like your loan, requires underwriting. Depending on your age and health, this process can take weeks or months. If your loan gets approved and the required life insurance is not ready for collateral assignment, your loan will not be funded until it is.

2. Even if you have the life insurance policy in force and ready to go, the collateral assignment process can delay your funding.


Sometimes the lender will suggest you use an existing life insurance policy for the collateral assignment. The problem is, the existing life insurance policy was likely purchased for another reason, such as paying off your home mortgage or creating income for your family if you die prematurely.


We have a better solution. We’ve launched our Life Insurance 2.0 platform. Within seconds, you can get competitive term life insurance quotes, apply and get an underwriting decision in minutes. Features include:



Click here for a 30-second video that describes the process.


Term life insurance is inexpensive and applying for it just got a whole lot easier. The expedited process is tailor-made for busy business owners who need coverage in a hurry to protect their families and businesses. We also provide this service to SBA lenders to help them get their loans fulfilled more easily and quickly.


Life insurance at the speed of light! Check it out or call me for more information – (805) 635-7200.