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IBLOC for Corporate-Owned Life Insurance (COLI)

An Insurance-Backed Line of Credit (IBLOC) gives your business the freedom to access the cash value of eligible whole life insurance policies. 

Whatever the financial need,1 an IBLOC provides your business with easy access to funds.


  • An interest-only revolving credit line that lets you tap up to 95% of the cash value of a whole life insurance policy2,3,4
  • Available to businesses and organizations 
  • No income verification
  • Minimum credit line: $200,000
  • No application fee or closing costs5 
  • No charge for portion of the line not in use
  • Interest may be tax deductible6
  • Streamlined application process using DocuSign®7
  • Credit limit increases can be easily requested8
  • Easy access to funds via line of credit checks, online banking and wire transfers
  • Flexible payment options
  • Online and phone access to loan information
  • Variable and fixed-rate options available

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

  • Real estate investments
  • Business improvements
  • Business investment/costs
  • Taxes
  • Debt consolidation
  • Unforeseen expenses

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 your business, please contact our Client Success team or your financial professional. 

1 An IBLOC cannot be used for the purchase of securities or to pay off a margin loan that was used to purchase securities.
2 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. (Bank) may determine in its discretion, not to exceed ninety-five percent (95%).
 Subject to credit approval and underwriting.
4 Policy 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 Bank has approved. 
5 The Bank does not charge an application fee. State, local, and/or third-party fees may apply in some states.
6 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. 
7 Application must be accompanied by the fully executed Beneficiary Consent form demonstrating that the named beneficiary of each eligible life insurance policy has affirmatively consented to borrower's pledging of the policy as security for the IBLOC.

8 No credit limit increase is permitted within one-hundred eighty (180) calendar days of the loan origination date.  Maximum number of credit line increases is two (2) within a twelve-month period.  Requests must be made in writing using the Form. 


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, and their use does not represent or imply endorsement of, or association with the products or services offered by the Bank.  The Bancorp is a federally registered service mark of The Bancorp, Inc.