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INSURANCE LINE OF CREDIT

If you need quick access to funds, our interest-only, revolving Insurance Line of Credit is a great option for both personal and business needs. You can easily borrow against the cash value of a whole life insurance policy.

Download Personal Application Download Trust Application

Features and Benefits Include:

  • A quick and simple application process
  • No prepayment premiums or origination fees
  • Monthly, interest-only payments on outstanding principal balance
  • Interest may be tax-deductible*
  • Flexible payment options such as, but not limited to: ACH, auto pay, checks, wires
  • Multiple policies can be combined and used as collateral for a single line of credit
  • No credit obligation will be reported on the borrower’s credit report1

Structure & Pricing:

  • Line of Credit up to 95% of the cash surrender value of the Whole Life Insurance Policy2
  • Term: 10 Years
  • Lines starting at $75,000 up to $10 million (larger lines considered upon request)
  • Competitive interest rates
  • Policy must be in effect for at least 12 months3
  • Ability to increase the credit line during the term4
  • Borrowers with individually owned policies or Trust owned policies can apply5

Accessing Funds:

  • Funds can be easily accessed by writing a check or scheduling a wire transfer
  • Minimum advance amount: $5,000
  • Monitor your account activity using ProvidentConnect Online Banking and Mobile Banking

Use Your Funds To:

  • Pay for tuition or plan a wedding
  • Obtain working capital to start or expand your business
  • Plan your dream vacation or buy or renovate your dream home
  • Easily access cash for emergencies or those unexpected, last minute expenses
  • And more!

Eligible Insurance Carriers:

Whole life insurance policy must be issued by one of the following approved insurance carriers to be eligible as collateral: Guardian Life, New York Life, MassMutual, Metropolitan Life, John Hancock, Northwestern Mutual, Brighthouse Financial, Penn Mutual, AuguStar Life (formerly Ohio National Life Insurance Company), and Pacific Life.

 

For more info, please reach out to:

Justin Delle Donne
Team Leader
973-440-5652
[email protected]

 

Divya Sheel
Relationship Manager
973-433-6995
[email protected]

 

 

1 Only credit inquiry from Provident Bank will appear on a borrower’s credit report.

2 Line is contingent on the life insurance policy remaining in good standing and subject to credit approval & underwriting.

3 Unless policy was a Section 1035 Exchange.

4 Based upon cash surrender value of insurance policy(s).

5 Assignment and loan documents must be completed by all policy owners. If the Trust is the policy owner, the trustee(s) must execute assignment & loan documents. No business owned or corporate owned policies.

* Consult your Financial Advisor or accountant.

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