Skip to content
  • There are no suggestions because the search field is empty.

How are credit limits determined?

Credit limits are determined based on the type of policy used as collateral. Your credit limit is evaluated twice per year for every policy on your line.

Our underwriting process for the Inclined Line of Credit depends on the type of life insurance policy you have.

Whole Life

  • Underwriting is capped at the policy's Available Loan Amount.

  • Your credit limit can be as high as 95% of the combined cash value of your policies, as long as that amount doesn't exceed the Available Loan Amount.

Your credit limit may be lower if:

  • Premiums are paid monthly, quarterly, or semi-annually rather than annually
  • The policy has a higher ratio of total annual premium to cash value
  • The policy is newer

 

Universal & Indexed Universal Life

  • Underwriting is based on the policy's annual Low Point Value.

  • Your credit limit will not exceed the annual Low Point Value minus an interest margin.

 

Variable Life

  • Underwriting is based on the policy's Net Cash Surrender Value.

  • Your credit limit can be as high as 50% of the Net Cash Surrender Value.

    • For a policy to count toward your Inclined Line of Credit limit, its cash value must exceed 30% of its Total Cash Surrender Value. This 30% contribution floor helps us manage risk, and it means policies with high surrender charges may not contribute to your credit limit.

 

Have questions?

We're always working on ways to give our clients access to the credit they deserve. If you have questions about our underwriting process, contact our Support Team at support@inclined.com.