Minister Life Insurance

If a church is expanding it’s facilities and is borrowing money to finance the project. The bank or Small Business Administration that is making the loan, can require the church to secure key man insurance to protect the loan.

So, a church is expanding their facility and borrowing $2 million to fund the deal.

The lender, as part of the package, required that $2 million of pastor key man life insurance be purchased by church on the life of the pastor. On the application, we named the church the policy owner and beneficiary and premium payer.

Minister Life Insurance Application Process

The pastor completed the application and required insurance exam, and the case was submitted to the insurance company for approval. We were able to secure a 20-year level key man insurance policy for $2 million on the life of pastor that allowed church to finalize the $2 million loan for the expansion project.

If you are minister and your church is considering an expansion, key man insurance is a great way to provide collateral assurance to the lender. The cost is usually inexpensive, and it is relatively easy to implement