How do I release existing assignments on my policies?
Policyowners with a Line of Credit at a third-party bank must take steps to release existing assignments on their policies before Inclined can complete their iLOC application.
If you have an insurance-backed line of credit with a third-party bank, refinancing it can take several weeks or months. This is because current assignments on your policies need to be released, and the balance of your existing loan moved back to your carrier as a policy loan before Inclined can open a new iLOC account. Policyowners are the only people who can request for existing assignments to be moved back to the carrier as a policy loan.
Every bank is different, so please contact your specific bank to ask what their process is to get started. You can also email support@inclined.com to request help. In many cases, we've helped other clients navigate this process with other banks, and we may be able to help.
Generally, the steps are as follows:
1) Request Account Closure / Balance Transfer
The policyowner must email something like the following to their bank and their specific bank representative:
Subject Line: Transfer Line of Credit Balance and Close Line
Body: Please transfer any balance of my line of credit ######### (insert account number) to my policy(ies) as a policy loan(s) and close my Line of Credit. Please copy me on all correspondence with my life insurance carrier.
2) Balance Transferred to Policy Loans
The bank will transfer the Line of Credit balance back to the policy(ies) as a traditional policy loan(s) (if any balance exists).
3) Release of Assignment
The will send the Release of Assignment form directly to the Insurance Carrier for processing.
4) Inclined Process Continues
After these steps are completed, Inclined Technologies will be able to continue our processing of the iLOC application.
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