Life insurance loans are a great way to manage your finances during the down times. The idea is simple: you pay a small premium to borrow money from the insurance company in order to pay off your debts.
Life insurance companies will lend you money if you have enough life insurance and if you can't afford to pay for your basic living expenses (such as rent and utilities) or if you want to make a big purchase that requires cash. Things like home renovations, car repairs or even buying a new computer are perfect examples of why life insurance loans may come in handy.
The amount of money that can be borrowed depends on how much life insurance you have and how much interest the loan charges (which will likely be higher than the interest rate on your regular credit card).
But if you've ever wondered how to get life insurance coverage, or how much coverage you need, I have a few tips for you!
1) Make sure your policy is current. You should be sure that your life insurance company is able to pay out on your death without having to sue each other for payment. If not, consider switching companies or raising the amount of coverage on your existing policy.
2) Consider adding additional benefits like critical illness coverage and disability income protection. These may not seem like big deals, but they could really help out in the event of a catastrophic medical event that prevents someone from working for example.
3) Speak with an agent about whether adding these features will improve the overall value of what your policy provides.
Life insurance companies will lend you money if you have enough life insurance and if you can't afford to pay for your basic living expenses (such as rent and utilities) or if you want to make a big purchase that requires cash. Things like home renovations, car repairs or even buying a new computer are perfect examples of why life insurance loans may come in handy.
The amount of money that can be borrowed depends on how much life insurance you have and how much interest the loan charges (which will likely be higher than the interest rate on your regular credit card).
But if you've ever wondered how to get life insurance coverage, or how much coverage you need, I have a few tips for you!
1) Make sure your policy is current. You should be sure that your life insurance company is able to pay out on your death without having to sue each other for payment. If not, consider switching companies or raising the amount of coverage on your existing policy.
2) Consider adding additional benefits like critical illness coverage and disability income protection. These may not seem like big deals, but they could really help out in the event of a catastrophic medical event that prevents someone from working for example.
3) Speak with an agent about whether adding these features will improve the overall value of what your policy provides.
