Contact Us: ​(904) 826-0799
Leigh Insurance Agency of St Augustine
  • Quotes
    • Auto Insurance Quote
    • Home Insurance Quote
    • Life Insurance Quote
    • Renters Insurance Quote
    • Flood Insurance Quote
    • FR-44/SR-22 Quote
    • Boat Insurance Quote
    • Motorcycle Quote
    • Mobile Home Insurance Quote
    • Other Quotes >
      • ATV Insurance Quote
      • Boaters Safety Quote
      • Business Insurance Quote
      • Business Owners Package (BOP) Insurance Quote
      • Classic Car Insurance Quote
      • Event Insurance Quote
      • Final Expense Insurance Quote
      • Mortgage Protection Insurance Quote
      • Roadside Assistance Quote
      • RV Insurance Quote
      • Umbrella Insurance Quote
  • Service
    • Make a Payment
    • Update Contact Info
    • Policy Changes
    • Proof of Insurance
    • Contact My Carrier
  • Insurance
    • Auto Insurance
    • Home Insurance
    • Life Insurance
    • Renters Insurance
    • Flood Insurance
    • FR-44/SR-22 Insurance
    • Boat Insurance
    • Motorcycle Insurance
    • Mobile Home Insurance
    • Other >
      • Business Insurance
      • ATV Insurance
      • Business Owners Package (BOP) Insurance
      • Classic Car Insurance
      • Final Expense Insurance
      • Event Insurance
      • Roadside Assistance
      • RV Insurance
      • Umbrella Insurance
  • About
    • Client Testimonials
    • Staff Directory
    • Refer a Friend
    • Blog
    • Agency Photo Gallery
    • Agency Videos
    • Insurance Carriers
    • Accessibility Statement
  • Contact
  • Quotes
    • Auto Insurance Quote
    • Home Insurance Quote
    • Life Insurance Quote
    • Renters Insurance Quote
    • Flood Insurance Quote
    • FR-44/SR-22 Quote
    • Boat Insurance Quote
    • Motorcycle Quote
    • Mobile Home Insurance Quote
    • Other Quotes >
      • ATV Insurance Quote
      • Boaters Safety Quote
      • Business Insurance Quote
      • Business Owners Package (BOP) Insurance Quote
      • Classic Car Insurance Quote
      • Event Insurance Quote
      • Final Expense Insurance Quote
      • Mortgage Protection Insurance Quote
      • Roadside Assistance Quote
      • RV Insurance Quote
      • Umbrella Insurance Quote
  • Service
    • Make a Payment
    • Update Contact Info
    • Policy Changes
    • Proof of Insurance
    • Contact My Carrier
  • Insurance
    • Auto Insurance
    • Home Insurance
    • Life Insurance
    • Renters Insurance
    • Flood Insurance
    • FR-44/SR-22 Insurance
    • Boat Insurance
    • Motorcycle Insurance
    • Mobile Home Insurance
    • Other >
      • Business Insurance
      • ATV Insurance
      • Business Owners Package (BOP) Insurance
      • Classic Car Insurance
      • Final Expense Insurance
      • Event Insurance
      • Roadside Assistance
      • RV Insurance
      • Umbrella Insurance
  • About
    • Client Testimonials
    • Staff Directory
    • Refer a Friend
    • Blog
    • Agency Photo Gallery
    • Agency Videos
    • Insurance Carriers
    • Accessibility Statement
  • Contact

Leigh Insurance Agency of St Augustine Blog

What Is Collateral Assignment?

9/6/2022

0 Comments

 
Picture
​Do you seek a loan but are concerned about the lack of collateral? You should consider a potential source you may not have considered, your life insurance. A life insurance policy should be used as collateral to secure the loan through the collateral assignment. If you die while a policy is active, yet you still make payments on the mortgage, the death benefit is used to pay off the balance.

Here's what you need to know:
How Does It Work?
Lenders cannot guarantee that you can reimburse a loan they authorize. Since your credit record is a great predictor, lenders may require extra security. Unfortunately, many with the best credit histories might pass away unexpectedly. Attempting to apply for life insurance as collateral provides lenders with another opportunity to protect their interests while also making it easier for debtors to get approved.

Term Life
A policy that lasts a specific length of time and pays out if someone dies while the insurance is valid to cover your creditor if you die before paying off your loan. Term plans that continue at least for as long as the borrowing term are often accepted as collateral by lenders.

Permanent Life

A constant policy covers you for the rest of your life and accumulates long-term monetary value. Suppose you discontinue paying the mortgage as the security assignee of life insurance. The lender may take a portion of the death benefit to satisfy your debt or take the policy's cumulative cash value.

Why Do Individuals Get Life Insurance Collateral Assignment?
Regardless of whether you consider them a collateral assignee on your life insurance, institutions and lending businesses should do everything to recover their money. Like a credit requirement, some lenders ask you to put up a collateral assignment of the life insurance policy.

Whenever a creditor asks for a collateral assignment contract, it implies they believe you may not have enough resources in your property to meet the payments of your existing conventional mortgage. They want the added security of knowing they may collect on your life insurance policy if you don't make your payments.

Conclusion
A collateral assignment may be for a portion or all of the policy's value, with recipients receiving the excess, if any, remains. Knowing about a collateral assignment is important to understand the basic information before getting it. Life insurance might help you get a loan approved if you make a collateral assignment.

At Leigh Insurance Agency, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get insurance that fits your needs. You can get more information about our products and services by calling our agency at (904) 826-0799. Get your free quote today by CLICKING HERE. Any coverage discussed is not guaranteed. Please contact us today to go over your policy to ensure your needs are met! We are here and happy to help.
0 Comments



Leave a Reply.

    Contact Us

    (904) 826-0799​
    1797 Old Moultrie Rd
    Suite 111
    St Augustine, FL 32084​
    Click Here to Email Us

    Archives

    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    August 2019
    July 2019
    May 2019
    March 2019
    February 2019

    Categories

    All
    Auto Insurance
    Boat Insurance
    Flood Insurance
    General Liability Insurance
    Health Insurance
    Homeowners Insurance
    Life Insurance
    Mobile And Manufactured Home Insurance
    Motorcycle Insurance
    Renter's Insurance

Navigation

Homepage
Insurance Quotes
Policy Service
Insurance Products
Contact Us
Agent Login

Connect With Us

Share This Page

Contact Us

Leigh Insurance Agency of St Augustine​
1797 Old Moultrie Rd
Suite 111
St Augustine, FL 32084
(904) 826-0799​
Click Here to Email Us

Location

Website by InsuranceSplash