Individually-Owned Policy
Underwriting Process WT

Step 1:  Begin Policy Application Process


1. Agent downloads and fills out Lionsmark Universal Application (Excel document that can be downloaded by clicking HERE).  

2. Agent uploads the Lionsmark Universal Application on the same web portal as above.


3. Agent sets up paramed exam for client (unless agent requests Lionsmark to set this up)


4. Lionsmark will transcribe data onto the carrier application (initially individually-owned)


5. Lionsmark will circulate the following documents to be signed by agent and client (you do not need to have your client sign because we handle that for you):

*(for carriers that allow e-signatures, and for carriers that do not, PDFs will be emailed for wet signatures)


Step 2:  Begin Loan Underwriting Process 


1. Immediately after the client signs/DocuSigns the policy application, the Agent uploads the lender-required financials through our online portal.  (CLICK HERE to see list of required documents at our secure document upload portal).


2. Lionsmark begins lender underwriting with Lender.

  • Policy ownership and borrower will be the insured person as an individual.

  • Lender determines the required collateral amount based on financials, as well as the type of collateral accepted (Lionsmark will notify the agent and client once determined).  This particular Lender (due to the size of the policy, type of loan, and loan rate) accepts cash accounts, bond funds, money market accounts, CDs, letters of credit, cash value life insurance policies as collateral, but not securities).

  • Collateral is pledged, but not moved to Lender.

  • Lender issues a term sheet once loan underwriting is approved.


3. Lionsmark submits Lender term sheet to carrier.



Step 3:  Carrier Formal Approval & Policy Delivery


1. Client assigns policy as collateral to Lender in addition to the required external gap collateral.


2. Client signs policy delivery docs.

3. Lender funds the first-year premium once collateral is verified.

4. Client pays the interest payment to Lender.

Step 4:  Annual Renewal Process

1. Agent uploads client's updated documents 90 days prior to the policy renewal date to recalculate collateral requirements:

  • Verification of Liquidity Statements

  • In-force Illustration


2. Lender will then re-underwrite the loan after the term of the loan (e.g., a 5-year facility is only underwritten once at the beginning of the loan, however the rate is reset each year).


Step 6:  Loan Payoff


1. Per the Agent's analysis and the client's agreement, the trust may grant permission to payoff the loan using either policy values (assuming policy values allow), or by using external funds.


2. There is no pre-payment penalty should the borrower decide to exit the loan after the loan term (e.g., 1-Year, 3-Years, 5-Years).