We lend against whole life policies because of the guaranteed nature of the cash value accumulated in these types of policies.
No, we will only lend against the guaranteed cash value up to 95%.
Request a policy in force illustration (sometimes referred to as a policy status or policy data report) from your agent or home office which shows the guaranteed amount of cash value.
We are happy to obtain this report for you, provided we have your agent’s contact information and your consent in writing.
The borrowing base may not exceed 95% of the guaranteed cash value at any time during the term of your loan.
Provided a signed application, ID, social security number, and policy values report has been submitted, the current turnaround time for a term sheet is not more than 48 hours. A term sheet is a non-binding commitment letter to the borrower containing interest rates, monthly interest payments, loan maturity information, and available credit line based on in force illustrations or a values report. Upon receipt of a signed term sheet, and confirmation of an assignment to the policy, closing is scheduled at borrower’s convenience. Confirmation of an assignment to the policy varies among carriers and may take up to 7 – 10 business days. If time is of the essence, you may reach out to us and request your application be processed expeditiously at no cost. In most cases, we are able to get the assignment recorded more quickly with your agent’s assistance.
No, because we do not run credit, nor do we inquire on your credit worthiness with any bureau at any time during the application process and for the duration of the loan. We request a social security number only for authentication and verification purposes.
We work with the Prime rate as reported by The Wall Street Journal.
There are no fees associated with the application process or closing.
The interest rate of loans based on Prime is assessed and subject to change only when the Federal Reserve meets and decides to make a change to rates; since the Federal Reserve meeting is held every six weeks, the interest rate is not frequently subject to change.
Loans are available up to 60 months, renewable upon maturity.
One of three things:
1) the borrower pays the loan out of pocket;
2) the policy owner may request the funds owed be collected from the insurance carrier, thereby creating a carrier loan;
3) the borrower requests a loan modification to extend the maturity date, increase the loan amount or both with one document.
With a line of credit, the borrower may pay down and reborrow principal. With a term loan, principal paid down may not be reborrowed and our credit card product is not offered with term loans. There is no difference in interest rates.
Six months prior to maturity of the loan we evaluate the cash value in your policy to determine if there is sufficient growth in cash value for an increase. If you would like to increase your loan principal prior to your maturity date, please contact your Kensington case manager to discuss your options.
Personal loans are made to an individual and used primarily for personal, family, or household purposes, such as to buy a car or repair a roof, or purchase a computer, or home appliances. Business loans are loans specifically intended for business purposes and the business is obligated to repay. The loan may be used to pay for salaries and wages, inventory or equipment, and new construction or investment.
A Kensington business loan is unique in that the loan is made directly to the business as opposed to the traditional bank’s method of making the loan out to an individual who checks a box that the loan is for business purposes. With Kensington, the company’s name appears on the loan documents as the borrower, not an individual. For accounting and tracing purposes, the proceeds are suitably deposited to the company’s account, and interest payments are collected from that company’s account.
The borrower may request an advance, by submitting a Notice of Borrowing electronically and in most cases, funds are received within 24 – 48 hours of the request.
The proceeds of loan will be wired to the bank account provided by the borrower on the Disbursement Schedule.
One way to overcome the minimum loan amount threshold is to add other policies to the loan. We can group an infinite amount of polices from various carriers for a single loan.
We can group an infinite amount of polices from various carriers for a single loan so long as each policy owner has some nexus to the prospective borrower.
Kensington will pay off all existing loans with the proceeds of the new loan.
Kensington may approve a request for a loan modification to extend the maturity date; or the funds may be collected from the insurance carrier, thereby creating a carrier loan.
The Assignee shares some of the same rights as the policy owner to the extent limited by the carrier’s collateral assignment agreement.
You can request this policy value report from your insurance agent or agency office. We are happy to obtain this report for you, provided we have your agent’s contact information and your consent in writing.