Before you apply
- Get the lender’s insurance requirement in writing.
- Confirm who must be insured, coverage amount and required term.
- Get the exact collateral-assignment instructions and assignee name.
- Share your target closing date.
During underwriting
- Complete the application accurately.
- Respond quickly to carrier requests for health, medical or financial information.
- Keep the lending team informed if timing or underwriting changes.
Before closing
- Confirm the policy is active.
- Complete the carrier’s assignment process.
- Obtain the documentation and acknowledgement required by your lender.
- Ask the lender to confirm that the insurance condition is satisfied.
For a fuller explanation, read SBA loan life insurance requirements.