Insuring a Collateralized Loan - Need a Company

[JRoot]

Can anyone recommend a life insurance company that will insure the full amount of collateralized loan? Every company I speak with say they will only insure up to 80% (some companies less) of the loan if a creditor is named as beneficiary.

The loan officer is saying they get these policies insured for the full amount all the time. I tried Simplified Issue, but she doesn't qualify. Thanks for any help.

 

[dgoldenz]

Name the insured as beneficiary and then do a collateral assignment. Why doesn't she qualify for simplified issue? Why are you using the simplified issue?

 

[JRoot]

I tried Simplified Issue because they needed this quick to get her SBA loan and were ok with the price, but she didn't qualify. She didn't qualify because she was declined in the past because of Lyme Disease, so there was an MIB hit...she's been symptom free for 5 years so she can get Standard rates now.

I have a tentative offer with West Coast Life, but for only 75% of the loan's value. I called a few other companies and they said the same thing. I mentioned a collateral assignment when I took the WCL app and they said the bank wouldn't accept it....it just occured to me that the loan officer may be wrong though.

 

[Death Cab For Tootie]

Mass Mutual has a program called "Quick Close". It's not a simplified issue plan, but they guarantee an offer within 7-10 business days. Maximum face is $10mm, and the insured does a Collateral Assignment to the lender. Check with your local GA for more details.