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Collateral Assignment of Life Insurance for Real Estate & Business Loans

Use a life insurance policy to help secure real estate and business loans without tying up your other assets.

Book a callCall (239) 271-3855

Use life insurance to secure real estate and business loans

A collateral assignment lets a lender hold a claim on part of your policy as security for a loan, while you keep ownership and your family keeps the protection.

How it works

  • You assign part of the death benefit or cash value to the lender
  • You remain the owner and keep paying premiums as usual
  • The lender is paid first from the benefit only if the loan is unpaid at death
  • The assignment is released when the loan is repaid

What it can do for you

  • Improve your odds of loan approval
  • Potentially negotiate better interest rates
  • Avoid pledging other assets such as property or investments
  • Preserve family protection while leveraging policy value

Who it helps

  • Real estate investors financing purchases
  • Business owners seeking commercial or SBA-type loans
  • Borrowers whose lender asks for added security
  • Partners who need coverage tied to a shared obligation

Lender requirements vary. We coordinate with your lender and advisors to structure the assignment and size the policy correctly.

Discuss collateral assignment

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Ready to talk it through?

A 20–40 minute conversation about your goals. Plain explanations, no jargon or pressure.

Book a callCall (239) 271-3855