Equitable Bank has expanded its cash surrender value (CSV) line of credit offerings through an arrangement with Sun Life.
The arrangement will allow qualifying whole life policyholders with Sun Life to apply for an Equitable Bank CSV line of credit, which comes in two varieties: FLEX and MAX products.
FLEX lines of credits allow policyholders who are 50 and older to access up to 90% of the cash surrender value of their insurance policy tax-free without having to make interest payments.
MAX lines of credit allow policyholders to access up to 90% of the cash surrender value of their insurance policy tax-free, provided that they make monthly interest payments.
Equitable’s CSV lines of credit are a demand credit facility, which means Equitable can demand payment of all or part of the outstanding balance of a loan at any time. The outstanding balance must remain below 95% of the cash surrender value of a policy.
“By expanding our CSV offerings through Sun Life, we’re able to meet the needs of more Canadians who are looking for unique ways to pursue more of life’s opportunities,” Mahima Poddar, group head and senior vice president of personal banking at Equitable Bank, said in a statement.