Quick SBA Loan Life Insurance Approvals

SBA Loan and Life InsuranceStart-up businesses usually require funding, and many entrepreneurs rely on SBA loans as a source of capital. SBA loans are easy to obtain, but borrowers are required to secure their loan with life insurance.

Unfortunately, most entrepreneurs are focused on creating their business, and they often overlook this requirement until the funding becomes critical, preventing them from moving forward.

Thankfully, some companies offer life insurance policies than can be approved and issued in as little as 24 hours. If you need life insurance in a hurry, we can help! Continue reading and we’ll walk you through the process.

Quick Article Guide:

  1. What’s the Best Life Insurance for a SBA Loan?
  2. What is No Exam Term Life Insurance?
  3. Why Do Lenders Require Life Insurance?
  4. How Much Does Life Insurance Cost?
  5. How Do I Apply for Life Insurance?
  6. We Can Help

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Which Type of Life Insurance is the Best for a SBA Loan?

Term life insurance is always the best choice for securing any type of loan, especially a SBA loan. Term insurance is the most affordable type of full coverage available. It also offers rates that are fixed for a set number of years. Most SBA lenders require a 10-year term, but longer terms, such as 15, 20, or 30-year terms may also be available.

No Exam Term Life Insurance (Fast Approvals!)

If you need term life insurance in a hurry, you’ll want to avoid the medical exam by purchasing your policy from a company that offers an expedited approval. These “no exam” policies are available to qualifying individuals under the age of 65, and are they often approved in as little as 24 hours to 7 days.

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Term Life Insurance with an Exam

If you don’t mind waiting six to eight weeks to get approved for your life insurance policy, taking an exam may save you some money on your life insurance. For applicants over the age of 65, and applicants with compounding health issues, you will probably need to complete an exam to get approved for coverage.

If you’re not sure of your best option, please feel free to call us directly at 855-247-9555. One our experienced agents will be able to advise you of the best product for your unique situation.

What Is No Exam Term Life Insurance?

In the past, getting approved for a term life insurance policy required completing a free, in-home medical exam. In recent years, however, some insurers began dropping this requirement to offer faster approval times. Instead of requiring an exam, the life insurance company will electronically review the applicant’s prescription history, Medical Information Bureau (MIB) records, and driving records.

This simplifies the approval process for the insurance companies and eliminates the hassle of scheduling and completing an exam for the client. Because of the convenience they offer, no exam life insurance often ideal for business owners, world travelers, truck drivers, or anyone who can’t stand the thought of giving blood.

Like traditional term life insurance, no exam term life insurance offers immediate coverage and level premiums for a fixed number of years. Prior to 2016, the only major downside to purchasing term coverage without an exam is that very few companies offer it and as a result, it was considerably more expensive.

In the last two years, however, more companies have begun offering some form of no exam life insurance to their customers. The increased competition has resulted in lower prices for consumers, and some applicants who are under the age of 60 and in good health may not have to pay more if decide to skip the exam.

Why Do Lenders Require Life Insurance?

Lenders don’t like a lot of risk, and the less risk they expose themselves to, the more competitive their interest rates can be. To offset the risk of a borrower passing away before their loan is repaid, SBA lenders require their borrowers to secure the loan with life insurance.

To secure (or collateralize) a loan, the borrower must purchase a life insurance policy that is equal to the amount of the loan, and list the lender as their primary beneficiary. This insures that the lender will be repaid if the insured passes away prior to repaying them.

Unfortunately, most business owners and entrepreneurs are consumed with building their business, and they tend to overlook their loan’s life insurance requirement until funding becomes critical. To make matters worse, most life insurance policies take about 6 to 8 weeks for approval and issue, which can cause delays.

To stay on schedule, business owners are usually limited to life insurance policies that offer an expedited approval process. This has made no exam life insurance an extremely popular choice with business owners who need to secure their SBA loan in a hurry because some companies will approve an applicant in as little as 24 hours.

How Much Does Life Insurance Cost?

How much does life insurance costBelow we’ve compared the cost of no exam term life insurance the cost of life insurance with an exam to illustrate the difference in cost. The rates below are for a 40-year-old non-smoking male and female in overall “good” health for their age group.

Exam vs. No Exam Monthly Rates for $500,000 in Coverage

No ExamExam
Term LengthMaleFemaleMaleFemale

*Display monthly rates are accurate as of 1/10/2019 and are provided for illustrative purposes only.

To obtain an accurate quote based on your coverage needs, age, health, and gender, feel free to call us directly at 855-247-9555. Our experts will be able to quickly compare your options and match you to the best company by asking you a few questions about your health and lifestyle.

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How Do I Apply for Life Insurance?

Applying for no exam life insurance is as simple as picking up the phone and giving us a call. We work directly with more than 45 top-rated life insurers to make sure our clients always get the best rates on their life insurance, with or without an exam.

By comparing your health to each company’s guidelines, we’ll be able to advise you of your available options as well as provide you with an accurate quote. If you decide to move forward, applying for coverage is as simple as completing an application and short telephone interview over the phone.

If you opt for life insurance with an exam, we’ll help you complete your application over the phone and schedule your free in-home health check. Once you complete the exam your work is done. We’ll coordinate with the insurance company and notify you when your approved.

No money is due unless you decide to accept coverage, and there is no cost to apply for life insurance. Every state offers a “free look” period which allows you to review your policy before you need to make a payment.

Once your policy is approved, you can accept the policy as, or we can help you adjust the amount of coverage you accept before moving forward. You can also decline to accept the policy without penalty.

We Can Help!

JRC Insurance Group is an independently-owned life insurance agency that is licensed in every state and our shopping services are free. Our agency offers decades of collective experience and every one of our agents offers multiple years of experience.

We have helped thousands of individuals, businesses, and families with their life insurance and we can help you too. Give us a call toll-free at 855-247-9555 to speak with a licensed agent who can advise you of your best option.

If you’re not ready to speak an agent, you can also request a free instant online quote below. In less than a minute you’ll be able to compare thousands of options from dozens of highly-rated insurers.

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Cliff Pendell

VP of Marketing at JRC Insurance Group
Cliff is a licensed life insurance agent and one of the owners of JRC Insurance Group. He has helped thousands of families of businesses with their life insurance needs since 2012 and specializes with applicants who are less than perfect health. In his spare time he enjoys spending time with family, traveling, and the great outdoors.
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