Two Conway Park, 150 North Field Drive, Suite 190, Lake Forest, IL 60045


Lending Overview

Our submission-to-funding turnaround is the fastest in the industry. Your dedicated account executive acts as your consistent point-of-contact throughout. We believe that borrowers should be given choices regarding their loan structure to ensure they leverage their assets appropriately.

BankDirect Premium Funding facilitates the completion of our clients’ insurance-related transactions by providing loan solutions within the framework of wealth preservation, wealth transfer, buy-sell agreements, key-man insurance, corporate-owned life insurance, and more.

All we do is life insurance premium financing, which means we will not share in the life insurance commissions, nor will we require clients to transfer assets to us. Additional benefits include:

  • Able to lend in all 50 states and U.S. territories.
  • Interest can be paid in advance, in arrears, and in certain circumstances capitalized (deferred).
  • No prepayment penalty.
  • No loan origination fee and minimal legal/documentation fee for traditional loans.
  • Efficient loan underwriting process and expedient annual review process.
  • Able to finance existing policies and refinance existing loans.
  • No mandatory annual drawdowns.
  • The various policy types we finance are universal life, indexed universal life and whole life.

Collateral Overview

We accept the following types of collateral in addition to the financed policy(ies):

  • Cash
  • Certificate of Deposit
  • Marketable securities
  • Letter of Credit
  • Cash surrender value of non-financed insurance policies

Borrower Profile

Eligible borrowers are defined as irrevocable (life insurance) trusts, special purpose limited liability companies and special purpose limited partnerships. The entity should be established for the sole purpose of owning life insurance within the context of either a personal estate/financial plan or within a corporate context. We are comfortable lending to single-purpose entities established as part of a multi-life corporate transaction.

The insured will have to be the grantor/settlor of the trust but cannot be the trustee. In the case of a limited liability company, we are comfortable with the insured being the manager of the special purpose entity.

The beneficiaries of the irrevocable life insurance trust or the limited liability company must have an insurable interest in the life of the insured(s).

The policy owner and beneficiary must be an irrevocable life insurance trust or a limited liability company.

For corporate-owned life insurance transactions, a special, single-purpose entity should be created for the loan transaction.

Client Profile

We look for the insured to meet the following basic underwriting criteria:

  • A minimum verifiable net worth of $7,500,000.
  • An Annual Gross Income of no less than $250,000.
  • A minimum age of 18.
  • Must be a U.S. citizen or permanent resident alien.
  • No bankruptcy in the last 10 years.