Is it possible to get whole life insurance for purpose of borrowing against it ?
Posted on Sep 22, 2009 under Insurance Information |I’m trying to pay off some debt
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Insurance Information
I’m trying to pay off some debt
September 22nd, 2009 at 7:28 am
When you have a whole life policy, some of it pays for insurance, some essentially goes into a savings account for you, and you can borrow against its cash value (the savings part). It would be quite awhile before you built up cash value to borrow against. So doesn’t sound like your plan is workable.
September 22nd, 2009 at 7:28 am
Buy term insurance and invest the difference.
September 22nd, 2009 at 7:28 am
People who borrow from whole life are borrowing against the cash values that have built up over time.
if you just took out policy, there would be little/no cash value to borrow against.