Step 1
Quick phone screen
Call or Text. We confirm loan type (7(a) / 504), closing window, face amount need, and who must be insured. Fifteen minutes. No online quote engine.
Part of your SBA 7(a) & 504 closing checklist
Life insurance when your SBA lender needs it — without stalling the close.
When your lender requires life insurance on an SBA 7(a) or 504, they often need an acknowledged collateral assignment from the insurer’s home office before they fund. We help business owners start that path fast — without a quote engine.
A confidential Call or Text starts the review. This site does not quote premiums or promise approval, rate class, product availability, or turnaround time.
- Not always required on every SBA loan — lender decides
- Home-office stamp on the collateral assignment is what many lenders wait on
- Existing policy can often be assigned; new coverage is often decreasing term
- No quote engine — Call or Text for a confidential review
Prefer Call or Text · No online quote form · Independent Licensed Insurance Representative
Request an informational review
Not a quote. No approval, rate class, product, or timing promise. We use this only to start a confidential review.
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Book a Risk Strategy CallClosing checklist framing
The policy is part of the closing checklist.
The loan waits on paperwork you don’t control.
Life insurance is not automatic on every SBA loan. On many 504s it is asked for only when collateral coverage is thin or the business depends on one owner’s work. When the lender does require it, the policy alone is not enough. They usually need a collateral assignment that the insurance company’s home office has acknowledged. Until that acknowledgment arrives, funding can sit.
Regular life applications can drag. Exams, labs, and long underwriting stacks do not match a closing date on the calendar. That delay is not about your intent. It is about process.
Where product rules allow, a simplified or digital path (often with no medical exam for qualifying applicants) can move faster — sometimes in about 24–48 hours to an underwriting decision. Timing varies by carrier, state, and file. Nothing here is a guarantee. The point is a clear path: cover the need, prepare the assignment, and get the home-office acknowledgment toward your loan officer.
Closing Rescue — three steps. Clear path.
Aligned to what the lender needs on the checklist — confirm the ask, find suitable coverage, then route the home-office acknowledgment toward your loan officer.
Step 2
Digital underwriting path (when you qualify)
For many applicants, carriers offer simplified or digital underwriting with no medical exam. “Qualifying” depends on age, amount, health history, and product rules. Some files still need full underwriting. Carriers decide. We do not.
Step 3
Collateral assignment to your loan officer
After issue (or as the carrier allows), we help route the collateral assignment so your loan officer can receive the home-office acknowledgment the lender needs before funding. We coordinate. The carrier’s home office stamps. Gregory does not underwrite and does not control carrier timing.
This page may fit when…
Common situations where a Call or Text review helps — not a promise every file looks the same.
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Your SBA or bank lender requires life insurance
The ask is on the closing checklist — often with a collateral assignment and home-office acknowledgment.
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The loan depends on a key person
Business hangs on one owner’s work, or collateral coverage is thin — lender wants life coverage sized to the exposure.
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Coverage needs to size to the loan
Face amount and term should line up with what the lender names — often decreasing term when a new policy is needed.
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You have a closing deadline
Funding waits on paperwork. We map the fastest honest path available for your file — carrier timing still applies.
What lenders typically look for
Common lender needs on SBA-related life insurance — not a promise that every loan uses the same checklist.
Term matches the loan
Policy duration should line up with the loan term (or remaining term) the lender requires.
Amount covers the gap
Face amount should match what the lender names — often to bridge a collateral gap or key-person exposure, consistent with loan size.
Home-office stamp
Lender needs an acknowledged collateral assignment from the insurer’s home office — not only a signed form sitting in email.
In-force path before funding
Lender usually needs the policy issued / in force (or carrier-confirmed) so the assignment acknowledgment is real paperwork, not a draft — and proof the policy stays active for the life of the loan.
Exact requirements come from your lender and loan docs (CDC / bank guidance varies). Some lenders note that if a new policy is needed, decreasing term is often the fit they prefer — and that credit life or whole life is typically not what they require. Existing policies can sometimes be assigned. Carriers still decide issue, amount, and assignment processing. We are not the SBA and not your lender.
Personal term, key-person, and what your family keeps
Calm accuracy matters here. These are related ideas — not the same product path.
Common lender path
Ordinary personal term + collateral assignment
Many closings use a personally owned term policy (often decreasing term when new coverage is needed) with a collateral assignment to the lender. The home office acknowledges the assignment. Existing policies can sometimes be assigned if amount and term fit.
Different product
Key-person / business-owned coverage
Key-person or business-owned life insurance is a different product and ownership structure. Some lenders care about key-person exposure; that does not automatically mean they want a business-owned policy. Your loan docs and loan officer decide what they will accept.
Trust clarifying
Your family keeps the rest
A collateral assignment typically gives the lender a claim up to what they are owed (or as the form states). After that claim is satisfied, remaining death benefit generally goes to your named beneficiaries — your family keeps the rest under the policy terms.
FAQ
Is life insurance always required on an SBA 504?
No. Some CDC / lender pages state it is not a typical 504 requirement. It often comes up when collateral coverage is low or the business hangs on one person’s work. Your loan officer decides after review. When they require it, plan on size/term fit plus a home-office-acknowledged collateral assignment.
What is a collateral assignment?
It is paperwork that gives your lender a claim on the life insurance death benefit up to what they are owed (or as the form states). The insurance company’s home office typically must acknowledge it. That acknowledgment is what many lenders wait on before they fund.
How fast does it take?
Some simplified / digital paths can reach an underwriting decision in about 24–48 hours when you qualify and the product is available in your state. Other cases take longer. Assignment acknowledgment has its own carrier timeline after issue. No fixed clock is promised here.
Can I use an existing policy?
Often yes — many lenders allow you to assign an existing policy if amount, term, and assignment rules fit. If you need a new policy, lenders sometimes prefer decreasing term sized to the loan; credit life or whole life is typically not what they require. Either way, the carrier must process the home-office acknowledgment. A short Call or Text can sort the cleaner path.
What if my closing is this week?
Call or Text now. Say the closing date and the lender’s written insurance requirements. We will map the fastest honest path available for your file. Speed still depends on carrier rules, underwriting, and home-office assignment processing — not on this website.
Is personal term the same as key-person life insurance?
No. Many SBA-related closings use ordinary personal term with a collateral assignment to the lender. Key-person or business-owned coverage is a different product and ownership structure. Lenders may care about key-person risk without requiring a business-owned policy. We sort which path your loan docs actually ask for on a Call or Text.
Ready to clear the life insurance item on the checklist?
A confidential Call or Text starts the review. No online quote engine. No promise of approval, rate class, product availability, or turnaround time.
Call 800.365.TERM (800-365-8376) · Text / Direct 754-313-6200 · Independent Licensed Insurance Representative