Loans 401k vs life ins.
Hi Terry, hope you and your loved ones are safe and healthy during these trying times.
Would it make sense to take a loan from my 401k (which I can pay off in 5 years) to payoff a loan against my life insurance? which has gone unpaid and is now about $25k ;( I am a healthy 58 year old.
Thanks!
Terry Says
No, that doesn’t make sense. You’ll need the benefits of a larger 40l(k) while you’re alive. The death benefit on your life policy will be reduced by your loan– but that’s someone else’s problem!
