Frequently Asked Questions
How do I begin the process?
To make an official loan offer, VivantPay must review your life insurance policy. The easiest way for VivantPay to get the necessary information from your insurance carrier is to complete the Illustration Request Form. This allows VivantPay to view your policy information and determine a loan amount.
​
What type of life insurance policy do I need to have to qualify for VivantPay?
​
Approved borrowers have an individual, permanent life insurance policy worth at least $25,000. Whole Life and Universal Life are the two most common permanent life insurance policies. If you have one of these policies, or certain Group policies (such as FEGLI policies held by former federal employees), you may qualify.
How exactly do I pay for the loan from VivantPay?
As long as you continue to make your life insurance premium payments, you never have to use your own funds to repay the loan. The entire loan is repaid when your life insurance benefit is paid out. VivantPay is paid back the loan amount plus interest per year, beginning on the date of the loan.
The remainder of your life insurance benefit is paid to your beneficiaries.
What if I take a loan from VivantPay but later I cannot afford the insurance premiums, or I just want to cancel my life insurance policy?
In this situation, you’ll transfer ownership of the policy to VivantPay as your loan repayment. Once we take over the policy, you still get to keep your loan and do not owe VivantPay any money out of your pocket.
​
How does the application for a loan from VivantPay, or the loan itself, impact my credit?
VivantPay is unique in that it does not make decisions based on credit score.
When you receive a loan, we do not report this amount to the credit agencies.
In some cases, VivantPay might need to perform a “soft” credit inquiry; this is visible on your credit record, but does not impact your credit score.
Neither an application nor a loan will impact your credit score!
If I take a loan from VivantPay, can I pay it back before my life insurance benefit is claimed?
Yes, borrowers can pay back their loan in full, at any time, if they desire. They will be responsible for the loan amount and any interest that has accrued. If paid off within the first 12-months, a small termination fee applies. At this time, only a full lump-sum repayment will be accepted.
Once I have returned the loan paperwork, how long will it take to receive the loan funds from VivantPay?
Since we must rely on the life insurance carrier to process the collateral assignment, it generally takes 1-2 weeks. In some instances, the insurance carrier’s processing time is slower, but in all cases, VivantPay works tirelessly to make sure that the process is as smooth as possible for the borrower.
What if I miss a life insurance premium payment on accident, will VivantPay take over my policy?
VivantPay understands that there might be situations that cause people to miss their life insurance premium payments. If a policy ever goes into its grace period, the insurance carrier will notify the policy owner. If VivantPay learns that a policy is within 30 days of being cancelled, VivantPay will make a one-time courtesy premium payment to avoid cancellation.
We will notify you of the amount of this payment, and this amount will be added to the loan principal.
At that time, it is important for the borrower to advise VivantPay whether this was a mistake, or whether the policy is no longer needed or wanted.
If the policy is no longer wanted, or if the policy ever again comes within 30 days of being cancelled, VivantPay will have the right to take over ownership of the policy permanently.
What is a collateral assignment?
A collateral assignment simply provides a lender with a guarantee that an insurance carrier will pay any amount owed directly to the lender when any benefits are paid from the policy. In this case, the collateral assignment is to ensure that the insurance carrier will pay the loan amount plus the accrued interest directly to VivantPay.
What if I qualify for more money than the cost of my care?
VivantPay allows borrowers to either receive the excess to their bank account or keep the pre-approval open, and if they need additional funds in the future, an additional loan could be made with very minimal additional paperwork. In any event, interest is only accrued on the amount loaned, not on the excess available.
​​