How It Works
If you are interested in finding out more about a Gracie Point policy loan or in applying for a Gracie Point policy loan, send us an email at email@example.com or give us a call at (212) 487-5121 and we will contact you to answer any questions you or your agent might have. The application process has just a few simple steps.
Once you have decided you are interested in proceeding, we will work with you and your agent, if you like, to structure a product that meets your financial and personal objectives. At that point, you will provide us with the additional information we will need to complete the process.
Financial Underwriting, Credit Check
We will do a financial underwriting on you or your borrower and run a credit check to assure that you meet our loan standards.
Modeling and Qualification
Gracie Point will run an initial modelling on your policy to determine the economic performance of your loan. In addition, based on your completed information, Gracie Point will determine if you qualify for a policy loan under our program.
Once you qualify for a Gracie Point policy loan, you and/or your agent will complete our loan application and the required supporting documents and send them to us.
Receipt of Low Point Letter
Because our policy loan is secured by the cash value of your life insurance policy, we require your life insurance carrier to send us a document indicating the guaranteed amount that they will pay upon the surrender of your life insurance policy for the following specified period of time.
Collateral Assignment of Life Insurance Policy
Because our policy loan is secured by the cash value of your life insurance policy, we ask that you collaterally assign your life insurance policy to us with your life insurance carrier to secure your obligations under the policy loan. You retain title to the policy and the right to name and change beneficiaries and certain other rights.
Because the cash value of your life insurance policy will not usually equal the value of your premium finance loan, we ask that you make up the difference with cash to secure your obligations under the premium finance loan. The cash will be held in a segregated account in your name. Once the premium finance loan is paid off, the cash will be returned to you.
Upon closing of the policy loan transaction, funding will occur. Depending upon the type of transaction, either the proceeds of the loan will be paid directly to your life insurance carrier to pay premiums on the policy, or to the life insurance carrier or a third party lender to pay off an existing policy loan.