Borrowing Money from the Policy’s Beneficiary, Family, or Friends

In the event of a major illness, the least expensive option is usually to borrow money from family or friends, if possible. In the event of a terminal illness, it may be possible to use your life insurance policy as collateral for this type of loan in order to ensure repayment. It is occasionally possible to use a life insurance policy as collateral for a commercial loan. However, borrowing from family or friends is generally easier and should cost less in the long run.

If a policy owner needs immediate financial help and does not have family or friends that are able to make a loan, some other options to consider are: Viatical Settlement / Life Settlement or Accelerated Death Benefit