- Do I need life insurance if I’m single with no children?
- July 10, 2015
Life insurance can also be used to fund long-term goals.
“If they purchase a term policy and lock in rates at a young age now, they are guaranteed insurability and will be able to convert the policy into a whole life insurance policy if their needs become more permanent such as opening a business or purchasing a home. If you were to die, life insurance can help pay off your business loan or mortgage obligations,” explained Brian Ashe, spokesperson for the LIFE Foundation.
Ashe adds that utilizing the cash value of a life insurance policy can be very attractive in terms of making loans available to the policyholder.
“You can accumulate substantial cash value through a life insurance policy and avoid having to deal with the typical loan approval process at a bank,” Ashe said. “You can also choose the terms of repayment and pay off the loan at any time. If you have the policy open for 10 years or more, the monies in the cash value would accumulate and you would have a sizable down payment for a home or car loan.”
Home mortgage debt
If you had a relative co-sign on a home mortgage and you died, they would be stuck with trying to pay off your mortgage. Co-signers are responsible for 100 percent of the debt if something were to happen that might cause the loan to default. Life insurance can be used to cover the costs of a condo or home loan.Pages: 1 2 3
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