I am no expert in Life Insurance as I am a P&C guy. I have a client that has a term policy. He recently got a large business loan and is needing to collaterally assign a portion of the death benefit to the bank.
He needs $150k assigned for the loan, but the actual loan amount is over $1M. His policy is only for $650k. In the Collateral Assignment he signed with the bank, it specifies the amount to be assigned as the $150k.
If he were to pass away, could the bank receive the full death benefit since it's assigned to them? Or does the verbiage stating the assigned amount only being $1
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He needs $150k assigned for the loan, but the actual loan amount is over $1M. His policy is only for $650k. In the Collateral Assignment he signed with the bank, it specifies the amount to be assigned as the $150k.
If he were to pass away, could the bank receive the full death benefit since it's assigned to them? Or does the verbiage stating the assigned amount only being $1
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