Getting a Loan without Losing Your Policy

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I need money but don’t want to throw away my whole life insurance policy by receiving a settlement. What can I do?

Getting a Loan without Losing Your Policy

If you have a whole life insurance policy and need a loan, you may be able to borrow against your coverage without losing your policy. You will have to pay the money back to keep your policy, but it may be much cheaper and have more flexible terms than a high-interest short-term loan. To determine your whole life insurance quote amout if you want to take a loan, consult with your broker. You will usually be limited by the cash value of your policy (not your coverage amount, but the amount you would receive if you were to “sell” your policy back to the insurance company) and should contact your whole life insurance representative to determine the exact amount, as well as any stipulations on your policy.

   

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