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The Bancorp has decades of multi-industry banking experience and a technological focus to help our clients achieve sustainable business growth.
AGILE, SECURE & SCALABLE FINTECH SOLUTIONS
Our partners benefit from our financial strength and industry expertise.
The Bancorp deploys custom payments services merging cutting-edge technology with superior regulatory and compliance infrastructure.
Accessing new avenues to leverage existing wealth
Through strategic alliances with nonbank wealth management platforms, we enable independent and registered financial professionals to expand their service offering to better compete with larger and more fully-resourced institutions.
A one-of-a-kind offering to serve you better
The Bancorp Commercial Lending business offers a distinctive set of services which reflect our commitment to meeting your evolving business needs.
Whether you need a small business loan or leasing services for a fleet of vehicles, we can provide you the expertise and financial traction to keep you on the road to success.
COMPETITIVE BRIDGE FINANCING SOLUTIONS
THE BANCORP PROVIDES BORROWERS WITH CERTAINTY OF EXECUTION FOR NON-RECOURSE COMMERCIAL REAL ESTATE BRIDGE LOANS NATIONWIDE.
As a direct lender, we provide a streamlined, single source of origination, funding, and asset management for loan brokers and their clients seeking to purchase and reposition multifamily and other commercial real estate properties.
WE TAILOR BANKING SOLUTIONS TO YOUR BUSINESS NEEDS.
Across our Fintech Solutions, Institutional Banking and Commercial Lending business lines, The Bancorp offers a wide range of products and services that can transform your business needs into long-term, technology-enabled solutions.
GAIN INSIGHT FROM INDUSTRY EXPERTS
OUR FINETICS® BLOG OFFERS TIMELY COMMENTARY ON THE LATEST BANKING TRENDS.
Tap into the mindset of The Bancorp solution leaders as they discuss what’s new in the banking industry and how The Bancorp can help you stay ahead of the curve.
EXPERT COMMENTARY AT YOUR FINGERTIPS
THE BANCORP OFFERS A VISIONARY APPROACH TO BANKING BACKED BY DECADES OF INDUSTRY EXPERTISE.
The Bancorp solution leaders are financial industry experts conversant with the latest banking trends and the next generation of business banking solutions.
THE BANCORP DESIGNS THE FUTURE OF BANKING ONE CLIENT AT A TIME.
We’re not a startup, but we think that way. The Bancorp approaches each client’s needs as an opportunity to develop the next generation of banking products and services.
STRENGTHENING OUR VISIONARY FOUNDATION
THE BANCORP LEADERSHIP FOSTERS AN INVENTIVE APPROACH TOWARD BANKING.
The Bancorp Leadership Team sets the compass for exploring new perspectives that drive continuous organizational growth.
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The Bancorp offers a dynamic work environment and ongoing opportunities to broaden your knowledge and enrich your skill sets.
COMMITTED TO DIVERSITY & INCLUSION
THE BANCORP VALUES THE DIFFERENCES THAT MAKE US UNIQUE.
We cultivate an environment where all cultures, ideas and perspectives are equally acknowledged and respected.
Values-Based Business Practices
ESG principles are integral to The Bancorp’s business strategy.
Our Environmental, Social, and Governance (“ESG”) initiatives guide our business practices to create positive change for our local communities, the environment, our clients and customers, and the banking industry as a whole.
How an IBLOC Lender Values a Life Insurance Policy
Abdullah Rajput, Director, IBLOC Lead | Institutional Banking
The most inherent benefit of life insurance is providing peace of mind and financial protection for your loved ones with a funded estate plan. But some life insurance policies offer additional financial advantages that can be leveraged beyond the death benefit — including loans.
According to a recent report, the number of life insurance policies sold in 2021 increased by 5% compared to the year prior.¹ This increase in policies, which is projected to continue throughout 2022,² is attributed to greater awareness of the importance of life insurance amid the impact of the coronavirus pandemic.
The most inherent benefit of life insurance is providing peace of mind and financial protection for your loved ones with a funded estate plan. But some life insurance policies offer additional financial advantages that can be leveraged beyond the death benefit — including loans.
Dive into how financial professionals can discuss the value of life insurance policies with clients, including the opportunity for a line of credit from The Bancorp IBLOC Lead, Abdullah Rajput.
Benefits of Whole Life Insurance
Financial professionals can educate clients on the types of life insurance products available and the levels of value provided from each — particularly whole life insurance policies.
These policies not only provide a death benefit the same way that term life insurance does, but also enables policyholders to accrue savings within a cash value over time. The cash value is the total amount of premiums paid — with cost of insurance and other carrier charges — available to the policyholder while they are alive.
As such, a whole life insurance policy can serve as an investment strategy, enabling clients to diversify their portfolio with little risk compared to other investments, such as securities.
An Insurance-Backed Line of Credit
With a whole life insurance policy, clients have an opportunity to take out a loan against the cash value. This enables policyholders to embrace arbitrage and use that cash value to work for them in other ways — from paying down debt, to investing in real estate, or paying for tuition. That’s where an Insurance-Backed Line of Credit (IBLOC) comes into play.
An IBLOC is an innovative lending solution that allows borrowers the freedom to access up to 95% of the cash value of their eligible whole life insurance policies at competitive rates and terms.3,4,5 Because an IBLOC is not tied to securities, it is better protected from market fluctuations, making it one of the more stable and resilient lines of credit.
This product allows financial professionals to be more nimble when it comes to managing their clients’ debt and liquidity needs. Utilizing The Bancorp to pursue an IBLOC also aids in a seamless and streamlined experience for all parties involved — the client, the financial professional and the policy carrier. With an intuitive electronic application via DocuSign®, an easy process to increase credit limits, multiple avenues to access funds and more, The Bancorp makes it simple to access liquidity when needed.
Lender Valuation of an Insurance Policy
There are two types of IBLOC applications — an individual or trust-owned policy, and a corporate-owned life insurance (COLI) policy — each of which have different underwriting criteria.
For either, when evaluating an application for an IBLOC, lenders at The Bancorp assess a few select criteria:
Policy needs to be at least one year old
Policy cannot be a modified endowment contract
Policy must be held through an approved carrier of The Bancorp, including: Guardian, New York Life, MassMutual, Northwestern Mutual, John Hancock, and Penn Mutual
Minimum credit line of $65,000 for individuals and trusts or $200,000 for business entities and/or organizations
Credit score of the individual
There is no shortage of options for the different types of life insurance from which to select. However, as financial professionals, it’s important to be aware of and help educate clients on the value a whole life insurance policy can provide from an investment standpoint, particularly as we continue to navigate a volatile market. An IBLOC in particular can position professionals as an innovative partner, illustrating forward-thinking wealth management strategies that can be utilized for their unique debt or liquidity needs.
3. Policy must be in effect for at least 12 months at the time of credit application. Line of credit is contingent on life insurance policy remaining in good standing. The insurance policy owner must be the borrower. Insurance policy must be issued by one of the following approved insurance providers to be eligible as IBLOC collateral: Guardian, MassMutual, Northwestern Mutual, NY Life, John Hancock, Penn Mutual, Security Mutual Life. There may be an adverse tax consequence to clients pledging the policy and as such, we strongly advise you to consult with your tax advisors before pledging the policy as collateral for a loan.
4. Subject to credit approval and underwriting.
5. Collateral Lending Value is an amount equal to the sum of the then cash surrender value of the policy to which the pledgor is entitled, multiplied by such percentage as The Bancorp Bank, N.A. may determine in its discretion, not to exceed ninety-five percent (95%).
Opinions, findings, or perspectives contained in this blog are those of the authors.
Insurance-Backed Line of Credit
IBLOC
Whole Life Insurance
Corporate-Owned Life Insurance
Liquidity Solution
Institutional Banking
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