McCain Had to Get Life Insurance Plan to Secure Loan for Campaign

The taking out a special life insurance policy was an unusual step to take. McCain had already offered his lists of fundraisers as collateral for the $3 million line of credit from a local bank to fund his campaign.

During the time, Senator John McCain was over $500,000 in the red. The line of credit from the bank was vital which allowed McCain to have a strong showing in New Hampshire and eventually get positioned to be the national GOP frontrunner. Now, McCain’s campaign is on solid standing.

This month, McCain has raised at least $7 million. His victories in New Hampshire, South Carolina, and Florida were instrumental to getting the new funding.

According to campaign finance expert at Colby College, Anthony Corrado, he had never heard of a candidate needing to secure a loan that included a life insurance policy.

“It was a big gamble, but I think one of the most important strategic moves the McCain campaign has made,” according to Corrado.

Campaigns’ financial help became clearer as several candidates submitted their 2007 year-end reports to the Federal Election Commission.

The finance report submitted by the McCain campaign revealed new details on how bad his financial situation was after it suffered summer of 2007.

“Basically, the campaign had overestimated what it could raise, and had overspent,” said, McCain adviser, Charles R. Black Jr. He added: “We had to make dramatic cutbacks.”

Late summer of 2007, McCain’s campaign had to cut staff in half and closed offices in 20 states. The focus had become New Hampshire, where all of the campaign’s funds were utilized.