NU Online News Service, March 1, 2005, 5:42 p.m. EST

A Jersey City, N.J., finance business has introduced a “pre-approved credit facility” service for wealthy life insurance purchasers.[@@]

The finance business, A.I. Credit Corp., a unit of American International Group Inc., New York, says the facility can help borrowers finance the purchase of big life insurance policies without submitting annually updated financial statements and tax returns.

The loan is designed to mature upon death. Clients can pay annual interest “in advance or in arrears,” A.I. Credit says.

A.I. Credit will provide all premium funding, including payments for the initial premiums, the company says.

Although A.I. Credit will not require annual financial updates, it still will look at collateral and borrower financial records before providing funding, the company says.

A.I. Credit says it wants to get all new and existing qualified customers into the new credit facility program.