Loan against life insurance
I took a loan against my life insurance policy about 10 years ago. Wasn’t in the position to pay back then but now I am. I know they will take out the amount once I pass. Should I repay this loan now that I can or just leave it. We’re talking about 12k.
Thanks
Terry Says
Well, first you should understand how that loan works. Read this great article from Yahoo finance.
You’re paying interest on that loan, and you should check with the insurance company about the rate. If it’s too high, you might want to pay it off.
Then again, if you keep the cash, you benefit. If you top up your life insurance, your beneficiary gets the benefit — after your death, of course.
So in that regard, the decision is yours!
