Glossary · Your money in the deal
In short
This is a type of permanent life insurance with a cash value component that grows over time. Its flexibility allows policyholders to adjust premiums and death benefits.
If you're using the cash value from a universal life insurance policy for your equity injection, your lender will verify it's "unencumbered," meaning it's not already pledged as collateral for another loan. You may need to assign the policy to the lender or cash it out. Understand the tax implications and any surrender charges before using it.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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