Insurance Lending

Overview

Permanent life insurance is often viewed as a passive asset. But it can unlock opportunities for policyholders who want a convenient line of credit.

Activate cash surrender value. Manulife Bank's insurance lending solutions provide a ready source of funds for your personal or corporate clients - whether they want to supplement retirement income, want to take advantage of an investment opportunity or have other cash flow needs. You can help them set up a secured line of credit simply by borrowing against the cash surrender value (CSV) of their permanent life insurance policy from approved carriers^¹.

Tax efficient source of funds^². And because no withdrawal is being made from the life insurance policy itself, no taxes are triggered. Clients may also be able to write off interest, so long as proceeds of the line of credit are used for investment purposes.

Solutions	Client needs	Client assets as security
Insurance lines of credit (ALOCs)	For clients who need quick access to cash for discretionary purposes using the cash surrender value in their permanent life insurance policy.	Manulife insurance policy with net CSV (i.e. whole life or universal life insurance) or a whole life policy with an approved life insurance carrier¹, Manulife segregated funds, Manulife mutual funds, and Guaranteed Investment Certificates.
Insured Retirement Program (IRP)	For clients at least 50-years old who are looking to extend the life of their investment portfolio by supplementing retirement income with tax-free funds. Payments are capitalized.	Manulife life insurance policy with net CSV (i.e., whole life or universal life insurance) or whole life policy with an approved life insurance carrier^¹
CSV Line of Credit	For personal or corporate clients who need a high loan-to-value credit facility to fund large purchases or investments. Minimum interest-only monthly payments are required.	A whole life or universal life insurance policy with net CSV held with an approved life insurance carrier¹
Immediate Financing Arrangement (IFA)	For high-net-worth business owners who can afford the premiums on a new large permanent life insurance policy. Once in force, they can borrow an amount equivalent to 100% of the CSV for business or investment purposes.	A whole life or universal life policy with with net CSV held with an approved life insurance carrier^¹. If client wishes to borrow above 100% of the CSV, see additional collateral security.

How to set up an application

Find out the requirements for setting up insurance lending solutions.

For personalized support, find the Private Lending Specialist in your area today.

¹ Manulife, Sun Life, Equitable Life, Industrial Alliance, The Canada Life Assurance Company (Great-West Life, London Life and Canada Life), RBC Insurance, BMO Life, Ivari, Empire Life, Desjardins Insurance

² Clients should consult their own tax advisors with respect to their specific situation.

Overview

How to set up an application

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