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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.

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.

 

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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