Equitable Bank is expanding its insurance lending solutions portfolio with the introduction of its new Immediate Financing Arrangement (IFA) for life premiums. The product allows those with a whole life policy from one of Equitable Bank’s insurance partners, to apply for financing for up to 100 per cent of total annual policy premiums.
“This most recent addition allows people to establish life insurance to protect their loved ones while still maintaining cash flow for their other investment or business opportunities,” says Equitable Bank’s vice president of sales and distribution for personal banking, Damon Knights.
The IFA joins the company’s CSV FLEX and CSV MAX line of credit products that are secured against the cash surrender value of whole life insurance policies. The bank says the new lending arrangements can be an alternative source of liquidity when clients need their cash flow for other investment or business opportunities.
The IFA “offers access to up to a maximum of 100% of the premium of your policy (evaluated on a case-by-case basis), without requiring you to submit additional collateral,” the company states. “Canadian residents that are age of majority and hold, or are in the process of obtaining, a whole life policy with one of Equitable Bank’s insurance partners are eligible to apply for this option.”
The IFA is not available to residents of Quebec.
To learn more about Equitable Bank’s whole life lending program, read the C-Suite interview featured in the September 2021 edition of the Insurance Journal.
