| If you've got a whole life insurance policy, you've got | | | | financial hardship in the years ahead. Not being able to |
| another option for consolidating your debts. This | | | | pay the bills or put your children through college is a |
| option can be an excellent choice, but once again, | | | | stiff price to pay for taking out a life insurance loan |
| only if you know you can pay the loan back. If you | | | | and not paying it back. |
| don't, you'll lose the amount of coverage you have in | | | | Before you go down this road, read your policy so |
| the amount of the outstanding loan. | | | | that you understand the terms clearly. Also, be sure |
| Borrowing against your life insurance policy has two | | | | that you understand any fees that are associated |
| distinct benefits: | | | | with taking out such as loan because they will affect |
| 1. There is no application or credit check to deal with. | | | | the overall loan cost. If you are not clear on how the |
| 2. You don't have to repay the funds based on a set | | | | process works, or on the associated fees, be sure to |
| schedule. If you don't want to repay the loan, you | | | | contact your insurance broker or the insurance |
| don't have to. | | | | company before taking the loan out. |
| Of course the catch here is that if you die, the | | | | Once you understand the terms and are certain you'll |
| amount of the loan is deducted from the face value | | | | be able to pay the loan back, borrowing on your life |
| of the policy. Your beneficiary could end with quite a | | | | insurance policy can make a lot of sense. |
| bit less money, which could cause them significant | | | | |