Steve Kobrin

LUTCF
Small Business, Insurance, Lifestage Based Planning
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“As an independent life insurance broker, Steve Kobrin specializes in helping people considered high risk and uninsurable.”
Firm:

The firm of Steven H. Kobrin, LUTCF

Job Title:

Owner

Biography:

I am second generation in the life insurance business, and have brought our local general agency on to the national stage.  In doing so, my team and I have created an independent brokerage with a truly unique platform of services, for both consumers and their advisors. These include:

* A policy for virtually every applicant, from preferred risk to high-risk. 

* Applications approved at the rate quoted

* Complementary policy audits for all clients to ensure optimum product performance.

When I am away from my desk, I am spending time with my family, especially my darling granddaughter. I am a serious martial arts practitioner, as well as a student of philosophy, religion, and psychology.

Education:

BA in Liberal Arts

Disclaimer:

I am licensed to sell life insurance in every state except Alaska and Hawaii.

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    Insurance, Life Insurance
February 2017
    Estate Planning, Insurance, Life Insurance
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    End of Life, Retirement Living, Senior Care
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    End of Life, Insurance
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    End of Life, Life Insurance

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    Life Insurance
What is a collateral assignment of life insurance?
100% of people found this answer helpful

This is a very common question among business owners applying for a bank loan. Let's look at an example.

Bob wants to borrow $2 million from his local bank, to expand his business. His banker agrees to lend him the money, but wants to have life insurance in place on Bob's life. Why? Because if Bob tragically dies before the loan is paid off, his banker doesn't want to have to chase his wife or his estate for the money.

So, the race is on for Bob to get a policy. He wants that coverage quickly so he can close the loan and get his money. He gets prequalified for coverage, finds a company that will give him good underwriting, and submits an application. The application is approved, the policy is delivered, he pays for it, and the coverage is put into force.

Now he is ready to execute a collateral assignment. He gets a form from his bank, or from the insurance company – whichever the bank prefers – and completes it. His wife is the beneficiary, and the bank is the assignee. He gets the money from the bank and sinks it into his business.

Now let's suppose he unfortunately meets his demise a year later. His wife files a claim. The claims department of the insurance company pulls the file and notices that the benefit has been collaterally assigned to the bank. They contact the bank and ask for documentation of any outstanding balance on the loan. The bank provides this, gets paid, and then Bob's wife gets the rest of the death benefit.

The use of a collateral assignment makes sure the lender gets paid only what they are due. If the bank had been made the beneficiary, they would've been given the full death benefit, even if some of the loan had already been paid off. They would've been overpaid, and Bob's wife would've been given nothing.

If you are applying for life insurance to secure your own business loan, remember that there is no reason to make the lender the beneficiary. Use a collateral assignment and make sure your broker walks you through its execution.

Please feel free to contact me with additional questions.

December 2016
    Investing, IRAs, Lifestage Based Planning
Which retirement account should we set up for our children?
100% of people found this answer helpful
January 2017
    IRAs, Taxes, Life Insurance
Can I use Life Insurance like a Roth IRA?
100% of people found this answer helpful
December 2016
    Personal Finance
Are dividends considered passive or ordinary income?
100% of people found this answer helpful
January 2017
    Insurance, End of Life
Should I boost a death benefit to convert the cash value of a life insurance policy?
100% of people found this answer helpful
December 2016