BANKING SOLUTIONS TO BROADEN BUSINESS PERSPECTIVES
WE TRANSFORM BUSINESS NEEDS INTO SOLUTIONS THAT GROW WITH YOUR BUSINESS.
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.
NAVIGATE A REWARDING CAREER AT THE BANCORP
WE’RE INVESTED IN YOUR DEVELOPMENT AND GROWTH.
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.
Introducing IBLOC for Universal Life & Indexed Universal Life Insurance
Eric Crowe, Director, Insurance Product Management, Institutional Banking
Everyone knows that life can be unpredictable and investing in life insurance protects families in case of tragedy. But when life’s unpredictability presents new opportunities or financial challenges, certain life insurance policies can prove to be a helpful asset to gain access to liquidity.
Some owners of permanent whole life insurance policies can tap into a portion of the accumulated cash value of their policy, essentially taking a loan from an owned asset without affecting one’s portfolio. This type of lending offers a significant financial advantage that can help cover unexpected expenses or help meet other financial goals like a real estate purchase or business acquisition, or provide funds needed to pay off other financial obligations.
Now, owners who hold a universal life or indexed universal life policy have the opportunity to access this liquidity option through an Insurance-Backed Line of Credit (IBLOC) through The Bancorp’s Institutional Banking business. An innovative lending solution, the IBLOC has helped financial professionals work with their clients to leverage up to 95% of the cash value of their whole life insurance policy. With the inclusion of universal life and indexed universal life policyholders, independent and registered financial professionals can work with our credit lending experts to offer this straightforward and low-cost way to access money to a greater number of clients.1-3
Differentiating between Universal, Indexed Universal, & Whole Life Insurance
Though universal life, indexed universal life, and whole life insurance policies offer the policyholder the ability to access funds, each has unique qualities, including how cash value is accumulated.
Universal Life & Indexed Universal Life
Policyholders are drawn to universal life and indexed universal life insurance because these policies offer flexibility and control. Owners may adjust their death benefit amount or increase the size of their policy. As long as all premium requirements are met, or the policy’s cash value exceeds the cost of insurance needed to sustain it, the insured will maintain coverage for the rest of their lifetime.
Where the difference lies is with how these policies accumulate cash value. Universal life grows its cash value according to a minimum interest rate but may grow faster depending on the insurer’s market performance. With an indexed universal life policy, the policy’s cash value is linked to an index such as the NASDAQ or S&P 500. Though it’s not guaranteed, an indexed universal life policy can gather a greater cash value than universal life policies, depending on the performance of the market index it is tied to.
Whole Life
The most common type of policy, whole life insurance, provides coverage to the policyholder for the duration of their life so long as premium payments are made and offers a cash value savings component. With a whole life insurance policy, the premium payments and interest on the savings component are fixed, and the death benefit is guaranteed.
Accessing Funds through IBLOC
With the addition of universal life and indexed universal life insurance policyholders, financial professionals can work with more clients to offer this unique lending option to help meet their liquidity needs. The IBLOC for individual clients and corporate-owned life insurance (COLI) provides many benefits, differentiating it from a traditional loan or borrowing directly from an insurance provider. With no application fees and offering competitive rates and terms, the IBLOC and IBLOC COLI give clients an interest-only revolving credit line, with tiered interest rates tied to The Wall Street Journal Prime Rate (WSJP) with a fixed-rate option also available.4 Because the IBLOC offers a revolving line of credit, clients can also increase their credit line easily without an additional application.5
An added benefit to an IBLOC is a streamlined lending process through The Bancorp’s proprietary loan origination platform, TALEA®. With an intuitive interface, TALEA incorporates DocuSign® and uses cutting-edge technology to help simplify underwriting through automation, efficient paperwork processes, and faster loan decisions and funding.
Financial professionals can offer improved collateral management through this strategic lending option and instill confidence in clients with whole, universal, and indexed universal life insurance policies when they face life’s unexpected financial challenges or opportunities.
Learn more about the IBLOC and lending with The Bancorp here.
1. 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, Ameritas Life Insurance Corp, 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.
2. Subject to credit approval and underwriting.
3. 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, N.A., ("Bank") may determine in its discretion, not to exceed ninety-five percent (95%).
4. The Bancorp Bank, N.A. does not charge an application fee. State, Local and/or third-party fees may be applicable in some states.
5. For whole life, no credit line increase is permitted within one-hundred-eighty (180) calendar days of the loan origination date. Maximum number of credit line increases is two (2) within a twelve-month period. Credit line change requests must be made in writing by using the Change In Terms Request Form available at bancorplending.com. For universal life or indexed universal life, annual reviews will be completed to determine eligibility for credit limit increases
Collateral-based borrowing may not be suitable for everyone. Consult a financial advisor about any associated risks. Consult a tax advisor for tax-related matters and an attorney for legal matters. Bank does not provide tax or legal advice. Rates, terms and conditions of loan products are subject to change without notice. Read all documents carefully.
DocuSign® is a registered trademark and its use in this advertisement neither represents nor implies any endorsement or affiliation with The Bancorp Bank, N.A.
Opinions, findings, or perspectives contained in this blog are those of the authors.
All references to "The Bancorp" refer to The Bancorp Bank, N.A., the wholly-owned subsidiary of The Bancorp, Inc.
Insurance-Bakced Line of Credit
IBLOC
Institutional Banking
Lending
Life Insurance
Whole Life Insurance
Universal Life Insurance
Indexed Universal Life Insurance
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