A.I. Credit Corp. says it will be coming to the rescue of life insurance policyholders who are having to choose between letting policies lapse and selling the policies to investors.
A.I. Credit, a unit of American International Group Inc., New York, says it will be offering new loans for customers who have used short-term loans to finance the purchase of new life insurance policies.
A.I. Credit will be marketing the new follow-on lending program, the Term Loan Rescue, through life insurance producers, the company says.
In the past, A.I. Credit and other lenders have helped customers finance the purchase of new life insurance policies.
Some regulators and life settlement industry executives have noted in recent years that the lack of follow-on financing all but forces some users of short-term premium financing loans to sell policies once the short-term financing arrangements expire.