Marketing Life insurance for SBA loans
- Thread starter SamIam
- Start date
I have a good buddy that does. I also write some.
Both of us have websites targeted to that demographic and everything is organic.
- 357
It is a great market. I have no leaf source for it but have stumbled upon a dozen or so over the years. Tahoe, you probably have more experience at this market than I do, but quick issue is very very important in my experience. I have had a number of cases where they only find out about the insurance required when they are a matter of days from closing on the loan. At that point price isn't nearly as important as time.
- 4,575
Find out who the SBA lenders are out there & go take them to lunch & spell out how you can help them close loans quicker, what carriers you gave with accelerated UW, issue times, etc
Trying to market to the borrower will be difficult as they don't know it is required until the day before closing as they didn't read some of the initial SBA documents, etc.
Sometimes, if they have adequate existing personal or business life, you can temporarily add collateral assignments to those policies while trying to get new policies issued just to get the loan closed. But don't be lazy & forget to get the collateral assignment removed, that can be really super bad down the road for either a death claim or if a client wants to convert or 1035 a policy. With so many banks that sell or merge, it can be near impossible to find someone that is willing to release the collateral assignment from a bank long, long gone. I have seen clients stuck in crashing policies unable to 1035 or clients up against conversion expiration in bad health unable to get a collateral assignment release
Trying to market to the borrower will be difficult as they don't know it is required until the day before closing as they didn't read some of the initial SBA documents, etc.
Sometimes, if they have adequate existing personal or business life, you can temporarily add collateral assignments to those policies while trying to get new policies issued just to get the loan closed. But don't be lazy & forget to get the collateral assignment removed, that can be really super bad down the road for either a death claim or if a client wants to convert or 1035 a policy. With so many banks that sell or merge, it can be near impossible to find someone that is willing to release the collateral assignment from a bank long, long gone. I have seen clients stuck in crashing policies unable to 1035 or clients up against conversion expiration in bad health unable to get a collateral assignment release
I use Bestow on the life side for instant issue. I wrote two last week. Both issued the same day as the application.
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