Life Insurance Loan Activity

Dec 4, 2018

  1. BNTRS
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    BNTRS Guru

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    I'm curious to compare notes with other agents who have experience with policy loans taken by their clients against whole life and/or universal life insurance policies.

    Are you experiencing:

    1. Longer processing times?

    2. Additional procedures in place to request a loan?

    3. Any failures to process based on "NIGO" like reasons (i.e. missing requirements that are not communicated and/or were never requirements in the past)?

    If you'd rather discuss privately please feel free to either PM me or contact me through the Insurance Pro Blog web site.

    Thanks in advance for any information provided.
     
    BNTRS, Dec 4, 2018
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  2. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    DHK, Dec 4, 2018
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  3. shonceman
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    Interesting article. One of my small life carriers had an internal problem where their customer service manager appeared to be working long hours, staying for an hour or two each evening after everyone else had gone home. Turns out she was going through client files, particularly those of orphan policyholders, looking for cash values to raid. She was forging ownership transfers over to her own family members and friends, who then took max loans on the policies. They in turn split the proceeds with her. This apparently went on for a few weeks before she was caught because one of the clients called in to ask about their cash value. Just one more reason for regular policy reviews with our clients!
     
  4. BNTRS
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    While anti-fraud measures are great, the spirit of this thread wasn't to discuss how insurers are preventing fraudulent activity.

    Thanks for the thought, nonetheless.
     
    BNTRS, Dec 5, 2018
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  5. shonceman
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    The point that David was making, and I was supporting, was that fraudulent activity in the past has led to more stringent requirements to access policy funds. That fits directly into the spirit of the thread which is (if I'm understanding it correctly): Is anybody besides you having more difficulties getting policy loans processed than they did in the past? So to be clearer - the answer is yes!
     
  6. Lloyds of Lubbock
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    I just did two max loans, processed the same day
     
  7. shonceman
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    That's great! Same company? My primary carrier will have a check mailed within a day or two as a rule. But some other carriers are a lot tougher (including the one I told the story about). Some companies are more paranoid than others, I guess.
     
  8. Lloyds of Lubbock
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    Two loans same company, direct deposited the same day.
    Now I used to work for the company they know me, but i told them not a rush put it in your regular processing.
    I have been told loans are generally processed within 3 days
     
  9. scagnt83
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    scagnt83 Worldwide Expert of Everything

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    For Withdrawals, I would say the average is around 2 business days to process. Usually 2-3 in my experience.

    Loans seem to take an extra day for processing in my experience. Id say average is around 3 days for Loans. And Ive found them to be a lot more picky in general with requirements for Loans. (perhaps regulatory reasons or actuarial processing reasons?)

    For the client to actually have funds in hand obviously depends on the method of delivery. I once had an ETF take 3 days to clear, but most take 1-2 days.
     
    Last edited: Dec 5, 2018
  10. Lloyds of Lubbock
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    The time of year is probably also generating more loan requests than usual also.
     
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