1. Get the lender's condition in writing
- Confirm whose life must be insured.
- Record the exact minimum death benefit.
- Confirm the required duration.
- Record the policy and assignment evidence deadline.
- Ask whether an existing policy may be considered.
- Obtain the lender's assignment form or evidence instructions.
Do not begin with a guessed coverage amount. Review how a lender determines the requested amount.
2. Review existing coverage before replacing it
- Confirm the owner, insured, death benefit, policy type, and in-force status.
- For term insurance, confirm the remaining term and renewal provisions.
- Identify policy loans, prior assignments, liens, or pending changes.
- Ask the insurer whether it can record the lender's required assignment.
- Keep existing coverage in force until any replacement is effective and reviewed.
Use the existing-policy guide for a deeper review.
3. Build a realistic underwriting plan
- Share the coverage amount, purpose, state, and actual deadline with a licensed producer.
- Ask which accelerated or no-exam pathways may be available.
- Plan for the possibility of an exam, records, financial evidence, or traditional review.
- Respond promptly through carrier-approved secure channels.
- Keep the lender informed when the carrier requests additional information.
Never send health records, tax returns, Social Security numbers, identity documents, financial statements, or policy files through this website.
4. Track policy and assignment as separate milestones
- Confirm the policy is issued and placed in the status required by the lender.
- Complete the insurer's approved collateral-assignment form.
- Resolve any difference between the lender's requested form and the insurer's process.
- Obtain carrier acknowledgment that the assignment was recorded.
- Confirm beneficiary and ownership instructions remain consistent with the actual documents.
Review collateral assignment versus beneficiary designation before changing either instruction.
5. Deliver the closing evidence
- Send evidence only through the lender's approved channel.
- Ask the lender to confirm in writing that the insurance condition is satisfied.
- Record any remaining premium, assignment, or policy-delivery requirement.
- Keep copies of the lender confirmation and carrier acknowledgment.
The lender decides whether the evidence is sufficient. Policy approval alone does not guarantee the loan will close.
6. Maintain and eventually release the assignment
- Keep required premiums current.
- Ask before making changes that could affect coverage or the assignment.
- At payoff, refinance, or replacement, request the lender's release instructions.
- Confirm the insurer has processed the release or new assignment.
- Keep the release evidence with the permanent policy records.
The borrower, lender, carrier, and producer each own a step
The checklist works best when responsibilities are explicit. The lender defines and accepts the condition. The carrier underwrites and records its policy documents. The borrower supplies complete information and maintains coverage. The producer coordinates the available insurance path without promising the carrier or lender outcome.