We’re pleased to announce that BMO Insurance whole life insurance policy owners now have the ability to use the cash surrender value of their policies as collateral for a line of credit with Equitable Bank (EQ).

It’s another option to access cash

With the Equitable Bank Cash Surrender Value (CSV) Line of Credit Program, your clients now have another option to access cash to supplement their retirement income, expand business opportunities or meet some other need without affecting the future growth that’s being built-up in their whole life policy.

Who can apply?

• Clients must have a BMO Insurance whole life insurance policy (this includes the BMO Insurance Whole Life Plan)
• The program is available for both corporate and personally owned policies
• In all cases, insureds must be age 50 or older (applies to youngest insured, in cases of joint life policies)

What about credit limits?

• EQ may approve credit limits up to 90%. However, each credit limit will be calculated based on the age of the insured and the projected growth of the underlying CSV
• There’s a $15,000 minimum loan and there must be at least $18,000 in available CSV

It’s a simple application process

• Unlike other loans of this type, the EQ loan application asks for less personal information since underwriting takes place against the policy
• Also, EQ requires less documentation which means a faster underwriting process
• There is no other collateral required beyond your client’s policy

Other points to keep in mind:

• There’s no application fee¹
• There’s no requalification, once approved
• The credit limit is set to make mandatory payments unlikely
• Prepayments can be made at any time, without penalties
• Clients don’t have to requalify for subsequent advances
• EQ pays advisors an annualized commission amount of 0.20% provided the line of credit remains in good standing. Commission amounts are calculated and paid monthly².

¹ Other fees may apply. Refer to EQ’s Advisor Guide for more details.
² Each advisor has the option to opt-out of compensation.