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Our Life Insurance for SBA Loan 3 Step Process

We work with SBA Borrowers (and Lenders) to provide life insurance for SBA Loans.

Simply put: We secure coverage the fastest, make the process simple and have special programs for those having a hard time securing coverage.

Here’s how it works:

Step 1: Fill out our quote form anywhere on our website or call us.

Step 2: We get you approved for a life insurance policy within 24 hours with the required collateral assignment form (if you qualify health wise).

Step 3: After the collateral assignment is signed and notarized by you, we rush the “recording process” where the life insurer has to sign off on it. This process can take up to 3 weeks and we’re able to get this through within 5-7 business days in most cases.

That’s it!

Every day, we work with SBA lenders across the nation and have the experience and knowledge to get this done quickly so you can get the funding for your business as soon as possible. We understand this is crucial for you and it needs to be handled in a professional and time-sensitive way.

You’ll be working with an SBA life insurance expert the whole time. You’ll have a direct line with any questions or updates. We do this all day, every day with business owners looking to secure coverage quickly, affordably and with an agent who understands the process you’re going through.

Life Insurance for SBA Loans

A life insurance policy is required to secure a small business loan when the business is tied to an individual which is almost all cases.

Specifically under SOP 50 10 5 (B), the “lender must determine if the viability of the business is tied to an individual or individuals. In these situations, the lender must require life insurance”.

When a life insurance for SBA loan policy is in place, the lender will either be named on the collateral assignment form (most common request) or as the beneficiary with special wording. Your lender will provide specific instructions. You can either get this information from your lender or put your lender in touch with us and we’ll take care of it.

If You’ve Been Declined For Life Insurance

When life insurance agents and consumers can’t secure life insurance coverage for SBA loans due to health and lifestyle issues, they come to us. Don’t let a decline get in your way of receiving your coverage.

If we can’t secure coverage through traditional life insurance carriers, we have access to a special program SOLELY for those who have been declined for coverage and need the coverage for an SBA loan. All it requires is a 1 page application, a copy of the bank loan document and the premium payment. Sample cases we’ve placed where other companies have declined or postponed:

1. $1,000,000 on a 42 year old male with high liver enzymes. Traditional carriers postponed coverage. We had a policy in force within 48 hours.

2. $325,000 on a 35 year old female who entered a drug rehab program 2 years ago.

3. $2,500,000 on a 60 year old male who had his Prostate removed last year due to Prostate Cancer.

Need Coverage Fast (and can’t qualify for a non-med policy)? Consider Short Term Life Insurance Coverage

If you can’t wait 30-90 days to get a life insurance policy in force, we have a program that will issue coverage while you wait for your coverage to be approved. This company can issue coverage for 30, 60 or 90 days with a collateral assignment. This will allow your loan to fund while your application is still in underwriting. (However, we’d need to speak with your lender directly to confirm this is ok and it usually is)

Why Work With Us?

-This is our specialty. We have our pulse on the entire market as we work with SBA borrowers and lenders daily.

-We work with over 60 life insurance companies to find you the best rate and have high-risk options most life insurance agents don’t know to exist.

-We’re the experts when it comes to securing life insurance for SBA loans. We have the experience and have seen every scenario possible.

We would appreciate the opportunity to earn your business.

SBA Loan Life Insurance 2023 Update

Come 2023, more eligible business owners are going to take out SBA loans to sustain and grow their business operations. Equally, these businesses will be required to buy life insurance policies that will act as collateral to protect the interests of their borrowers. This is a requirement under SBA SOP 50 10 5 (B) as long as the business is “tied to an individual or individuals”. 


This also dictates that the SBA life insurance size and term should also be consistent with that of the loan. The borrower must factor in the amount of collateral that will be needed to finish the loan balance in case of their death when determining the size of the policy. So you might not be able to use an existing life insurance policy if it does not fulfill the collateral needs of your SBA loan. Usually, the type of life insurance is crucial as it directly affects the amount and term required.


While whole and life insurance policies are viable options for an SBA Loan, term life stands out the best. It allows you to choose a specific term and amount to match those of your loan without worrying about increasing rates. What’s more, term life insurance premiums are more affordable than other types of policies in the market.


A collateral assignment gives your lender the right to claim the death benefits from your policy in the event of your death, but only the remaining balance of your unpaid loan. So the lender does not necessarily become the primary beneficiary of your policy, you are still allowed to choose a loved one as the beneficiary. On the other hand, your lender acts as the policy assignee and only gets the first priority for a part of the policy’s death benefits that match whatever loan amount is unpaid. As such, most lending institutions will require you to create a collateral assignment for your life insurance policy before they can fund your loan.


What Customers Say About Life Insurance for SBA Loan

20 reviews on
Joseph Allen
Joseph Allen
July 22, 2021.
Amazing service, helped me get the life insurance I needed fast
Brooks West
Brooks West
June 22, 2021.
Jason and his team did a great job keeping me informed as to where I stood in the process, always taking time to speak with me when needed and explaining anything that was unclear. I would recommend them without hesitation.
Jacob Dorst
Jacob Dorst
June 22, 2021.
Jason Hill was awesome!!! As someone becoming a small business owner for the first time, I knew very little about the process acquiring Life Insurance needed to secure my SBA loan, but Jason was incredibly knowledgeable, communicative, and helpful. He had great advice that I did not get after speaking with other agents and quickly earned my trust in ensuring I was getting the most out of what I needed. He was quick to respond to emails and speak to me directly over the phone, as well as being super kind, polite, and professional. I aboslutley recommend Jason Hill and would certainly reach out to him again in the future.
Adam Clough
Adam Clough
June 22, 2021.
Jason and Sara were quick and professional. They made the process of getting life insurance for our small business very stress free! They responded to our emails within a few hours. They were great to work with, I would recommend them to my family and friends and other small business owners without a doubt.
Therese Southwell
Therese Southwell
June 21, 2021.
Jason did an amazing job helping get my life insurance application reviewed and assigned in a timely manner. We were in a serious time crunch and he immediately took on that shared sense of urgency and advocated at every turn. This type of relentlessness was absent every other avenue we tried. He got the exact results we needed and he got it quickly and efficiently. We are exceptionally pleased with his efforts and his results!
Tim Henderson
Tim Henderson
April 22, 2021.
Jason, is a pleasure to work with. Its nice to deal with a professional that knows the correct answers to questions you have. At the beginning of getting life insurance I was unsure about how it worked and I had many questions. By the end of our work together everything was fully explained and I understand everything perfectly now. Professional, responsive and knowledgeable, what else can you ask for? One of the best in his field.
Clinically Media
Clinically Media
April 21, 2021.
Thanks for your help! Appreciated your expertise.
Daniel Busby
Daniel Busby
March 24, 2021.
Jason made the Life Insurance purchase fast and painless. Can't beat that.
Stephanie Chung Jekarl
Stephanie Chung Jekarl
March 10, 2021.
Jason Hill was very responsive, professional and got our SBA team the life insurance information that was needed to close the SBA loan.