• Signed and dated current personal financial statements (less than 6 months old).  Third party CPA or accountant prepared statements may be required based on loan request.
• Signed and dated past 2 years of complete tax returns
• Signed FIRST credit application
• Premium finance illustration
• Insurance company illustration
• Applicable brokerage statements to verify net worth

• Signed and dated current Trust financial statement (less than 6 months old)
• Signed and dated past 2 years of complete Trust tax returns
• Copy of executed Trust (signed, dated & notarized)

• Signed and dated current Corporate financial statement (less than 6 months old).  Most recent Fiscal Year Ending (FYE) prepared by third party CPA or accountant plus must recent quarterly internally prepared statements are required.
• Articles of incorporation and bylaws (include list of Officers and Directors)
• Copy of audited Corporate tax returns – Last 2 years (complete with all schedules, signed and dated by the Tax Filer(s))

• Copy of the Partnership agreement (include complete list of Partners)
• Copy of certificate of Limited Partnership

• Copy of Operating Agreement (include complete list of Officers and Directors)
• Copy of Certificate of Formation

Life Insurance Financing Credit Application

A Simple Cover Letter Goes a Long Way!

Financing life insurance is different from other premium financing because each loan is tailored to the borrower’s particular situation. For this reason, the best tool you can provide us with is a complete, well-organized cover letter. Your cover letter gives everyone involved a valuable snapshot of the loan strategy. Know that full disclosure of every element necessary for us to make business, credit and legal decisions is key to a smooth approval process. Your cover letter should include the following information:

• Desired loan structure (interest paid in advance, arrears, deferred, fixed…)
• Participants to the deal (i.e., borrower, owner, guarantor, beneficiary)
• Collateral to be pledged (if Letter of Credit, supply bank name and address)
• Client’s estate planning strategy
• Any other additional information unique to the client that might be beneficial to our underwriters

Collateral is the Key:

Collateral tends to be the most common area of the loan approval process that gives the producer and client the most issues. Luckily, there is a lot you can do to keep collateral from becoming an obstacle. Most importantly, do not put off discussing collateral with your client, a common mistake some first-timers make. When you submit your loan, know the borrower, guarantor and holder of the collateral. This lets us start the detailed process of collateralizing the assets necessary to secure the loan.
Avoid changes to collateral after underwriting. Why? No matter how far along your loan is, the new collateral and all supporting documents will have to be resubmitted for Credit Department approval. Additionally, if collateral changes are made after the loan documents have been drawn up, the loan must also go back through our Legal Department for document revisions.
Three things to remember that will save you time and headaches:

1. If pledging a letter of credit, it must be from an approved bank – call your FIRST Account Manager to see if your bank is approved.
2. If a CD is pledged, it must be from a FDIC insured bank.
3. If pledging collateral from a brokerage house, find out whether it is one of our 30+ firms that already have approved control agreements with FIRST.

Acceptable Forms of Collateral:

• Letter of Credit from an approved bank
• Certificate of Deposit (Funds must to be deposited at our Lake Forest Bank & Trust location).
• Life Insurance Policies Cash Surrender Value and Death Benefit
• Whole life and Universal life policies valued at 1:1
• Variable life will be discounted 50%
• Marketable Securities and/or Bonds
• Valuation subjected to discounting

Collateral is valued at the sole discretion of FIRST Insurance Funding Corp.