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IBLOC For Universal Life Insurance

An Insurance-Backed Line of Credit (IBLOC) from The Bancorp offers you the flexibility to access liquidity for life's opportunities and needs using universal life and indexed universal life insurance policies. 

Our streamlined application process promotes timely access to funding for almost any cash need1.


  • An interest-only revolving credit line that lets you tap up to 95% of the cash value of eligible universal life and indexed universal life insurance policies2-4
  • Competitive rates and terms
  • Minimum credit line: $75,0005
  • Available to individuals, trusts and businesses (no income verification) 
  • No application feesor closing costs
  • Flexible payment options
  • Interest may be tax deductible7
  • Credit limit increases can be easily requested8
  • Easy access to funds via online banking, line of credit checks and wire transfers
  • Online and phone access to loan information

Use your IBLOC in place of other lending options for financing needs such as:

  • Real estate investments
  • Home improvements
  • Debit Consolidation
  • Business investment, costs 
  • Taxes
  • Tuition

List of Eligible Insurance Providers:
  • Guardian
  • MassMutual
  • Northwestern Mutual
  • NY Life
  • John Hancock
  • Penn Mutual
  • Ameritas Life Insurance Corp
  • Security Mutual Life


For more information or to determine if an Insurance-Backed Line of Credit is appropriate for you, please contact our Client Success team or your financial professional.  

1An IBLOC cannot be used for the purchase of securities or to pay off a margin loan that was used to purchase securities.
2Policy must be in effect for at least 12 months at the time of credit application.  Line of credit is contingent on life insurance policy remaining in good standing. The insurance policy owner must be the borrower. To be eligible as IBLOC collateral the insurance policy must be issued by an insurance provider The Bancorp Bank, N.A. (Bank) has approved.
3Subject to credit approval and underwriting.
4 Collateral Lending Value is an amount equal to the sum of the then cash surrender value of the policy to which the pledgor is entitled, multiplied by such percentage as The Bancorp Bank, N.A. may determine in its discretion, not to exceed ninety-five percent (95%). 
5Minimum requested amount must be $75,000.00 or such greater amount as may be prescribed from time to time pursuant to 12 C.F.R. Section 1026.3(b) of Regulation Z issued by the Consumer Financial Protection Bureau as the minimum threshold necessary to qualify the Line of Credit as an exempt consumer credit transaction thereunder. 
6 The Bancorp Bank, N.A. does not charge an application fee. State, local, and/or third-party fees may apply in some states. 
7 There may be an adverse tax consequence when pledging the policy and as such, we strongly advise consulting with a tax advisor before pledging the policy as collateral for a loan. 
8 For an IBLOC secured with a universal life or indexed universal life insurance policy, annual reviews will be completed to determine eligibility for credit line increases.  

Collateral-based borrowing may not be suitable for everyone.  Consult a financial advisor about any associated risks. Consult a tax advisor for tax-related matters and an attorney for legal matters.  Bank does not provide tax or legal advice.  Rates, terms and conditions of loan products are subject to change without notice.  Read all documents carefully.

To help maintain the security of financial information, do not include confidential personal information such as account numbers or Social Security numbers in non-secure email correspondence.

All trademarks are property of their respective owners. The Bancorp is a federally registered service mark of The Bancorp, Inc.