Question
How to borrow against life insurance?
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16th Nov 2009 by Joseph Pousada
Many life insurance policies which have a cash value will allow you to take a loan against the cash value of the account. The interest paid on this loan may variable or fixed. Before taking a loan, review all your options with your insurance advisor as taking a loan can have an impact if the insured happens to pass away during the repayment time period. The unpaid amount (including unpaid interest) would normally be deducted from the cash value of the insurance payout. Also make sure you review all terms of the loan including provisions should the loan be unpaid for certain time periods and how that will affect your coverage.
Many life insurance policies which have a cash value will allow you to take a loan against the cash value of the account. The interest paid on this loan may variable or fixed. Before taking a loan, review all your options with your insurance advisor as taking a loan can have an impact if the insured happens to pass away during the repayment time period. The unpaid amount (including unpaid interest) would normally be deducted from the cash value of the insurance payout. Also make sure you review all terms of the loan including provisions should the loan be unpaid for certain time periods and how that will affect your coverage.
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9th Nov 2009 In Life Insurance
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Subjects: life insurance,