Those who want to benefit from an SBA loan are required to have a life insurance policy. Most small businesses that benefit from the SBA loans do not have a balance of the skilled required in business hence increasing the possibility of beneficiaries defaulting. A baker can have excellent baking skills and start a baking business but some of them will not have other necessary skills such as financial skills. When SBA analyze these factors, they find the need for life insurance as a necessity for these loans in order to protect the lender and their families. Companies like Life Ease can help you get an expedited life insurance with no exam when you need a life insurance cover for an SBA loan very fast to beat a deadline.
Thorough research should be the first step before applying for an SBA loan. It is very common to find people who realize about some of the requirements when the deadline is very near. The first step is to visit a life insurance provider because it is a basic requirement for SBA loans. It will be more beneficial if you start this process early enough because a life insurance will require a duration of 4-6 weeks before going into force. If you are too close to a deadline, you should visit companies that can provide expedited insurance coverage.
The next step after gathering the required information is the actual application process. All your information such as your contact information and other beneficiary information is provided at this stage. The insurance company will conduct a medical exam in which you have to answer some medical questions. If you are trying to beat deadlines, you can use the services of insurance providers such as Life Ease who don’t conduct these exams.
The applicant have to visit a third party exam company for a physical examination. You will be required to carry documents such as motor vehicle records, driving records, health records and criminal records. This process requires the presentation of all the required information for it to be complete. The underwriter will then asses the risk after all the information is presented in order to make a decision on whether to approve or decline your application. You will then sign the agreement and pay your first premium if your application has been approved.
The collateral assignment step is also very important in life insurance meant for SBA loans. The collateral assignment is a simple document that should be provided by the insurance company’s legal department. How to distribute the benefits in case of death is an issue that require an agreement between the parties in a life insurance. The amount you owe to SBA is given to them in case of death and the remaining amount is distributed according to your wish.