There may come a time when you want to make an important purchase or contribution; perhaps you’re starting a business, helping someone pursue their degree, or making overdue home improvements.
But what if you don’t have the appropriate funds to cover the costs?
Rather than turning to a bank for a loan, you may be eligible to take out a loan against the cash value of your permanent life insurance policy. Whether it’s whole life insurance or universal life insurance, a life insurance loan might help support your financial needs.
Read more: Advantages of Life Insurance
Covering Home Repairs
As a homeowner, the responsibility for household maintenance and repairs rests solely on your shoulders. Whether you need to mend a leaky roof, replace a water heater, or remove mold, having the money to cover the costs will alleviate some of the stress of home repairs. A life insurance loan can help you access the funds you need to pay for the repairs and keep your home safe.
Support During Retirement
Although most people enter retirement after planning and saving, there can still be unexpected costs or lulls in the market. Even the most prepared retirees may need help with significant expenses such as a new car, a home, or accessing additional cash flow during market downturns. No matter the need, a life insurance loan can help retirees comfortably navigate their expenses.
Contributing to a Wedding
Weddings are cause for celebration, but financing them can call for hefty payments and big budgets. The cost of engagement rings, venues, honeymoons, receptions, flowers, catering, and more can all add up. Whether you’re one of the people getting married or a parent helping to pay for the wedding, borrowing money from the cash value of your life insurance policy can be a reliable way to finance a wedding.
Paying for Tuition
One of the greatest investments you can make is in education, either for yourself or a loved one. Contributing to someone’s education can mean paying for tuition, but there may be additional costs, such as campus housing, food plans, books, supplies, and transportation. Taking out a loan against your permanent life insurance policy’s cash value can help you cover the varied costs of attending school.
Bolstering a Business
Being a business owner comes with many responsibilities, such as maintaining the business, working toward profitability goals, and navigating difficult economic times. If you need to bolster your business, you may want to consider taking out a loan against the cash value of your insurance to cover the costs. The loan can allow you to make needed improvements to the business in the short term and potentially benefit from the investment in the long term.
