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IBLOC for Whole Life Insurance

An Insurance-Backed Line of Credit (IBLOC) from The Bancorp gives you the freedom to access the cash value of your eligible whole life insurance policy at competitive rates and terms.

  • An IBLOC is an interest-only revolving credit line that lets you tap up to 95% of the cash value of eligible whole life insurance
  • Tiered interest rates tied to The Wall Street Journal Prime Rate (WSJP); fixed-rate option available. 
  • Minimum credit line: $75,000
  • Available to individuals and trusts (no income verification)
  • Streamlined application process using DocuSign®
  • No application fees5 or closing costs
  • Interest payments can be capitalized and may be tax deductible6
  • Easily increase credit limit7
  • 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 investment
  • Home improvements
  • Debt consolidation
  • Business investment/costs
  • Taxes
  • Tuition
  • Other liquidity needs8 

List of Eilgible 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. 


1. Subject to credit approval and underwriting.  
2. 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 Bancorp Bank, N.A. has approved. 
3. 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 deem in its discretion, not to exceed ninety-five percent (95%).
4. Minimum 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 Consumer Financial Protection Bureau as the minimum threshold necessary to qualify the Line of Credit as an exempt consumer credit transaction thereunder.
The Bancorp Bank, N.A. does not charge an application fee. State, local, and/or third-party fees may apply in some states.
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.  No credit line 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.  Credit line change requests must be made in writing using the Change in Terms Form.
8.  An IBLOC cannot be used for the purchase of securities or to pay off a margin loan that was used to purchase securities.

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.