We get many questions on using life insurance policies with cash value as collateral for bank loans. While this strategy does not work at all with a term insurance policy, whole life insurance is excellent collateral.
Often, local (as opposed to large/national) banks and credit unions will lend against the cash value of life insurance. So you may want to start with your local banker.
“The third option is that other possibility…”
– Lynn Barrette, Counselor and inspirational blogger
The Convertible Term Insurance Solution
“Whole Life or Term Insurance?” It’s a never-ending debate amongst financial advisors and self-proclaimed experts. Today, we’d like to suggest a third option.
But first… let’s summarize the two most popular and obvious choices:
Term life insurance allows the insured to afford more coverage for less premium, thus putting greater protection in place, in the form of a death benefit. However, term life insurance policies rarely provide a benefit, because they only provide coverage for a certain period of time and typically expire (like product warranties) before they’re likely to ever be used.
“Some people don’t like change, but you need to embrace change if the alternative is disaster.”
– Elon Musk
Investors have short-term memories, which is why so many cling to the stock market, even when it’s on a downward trend, or overdue for a correction.
If you have lost confidence in the market, or are simply looking for WHERE you can invest OUTSIDE of the stock market—safely and profitably—you’re not alone.
“When people point out that I am successful in business AND a woman and a mother, I have to wonder why that should come as a surprise or be a fact worth noting.”
– Kim D. H. Butler, Financial Author and Advisor
What challenges do women face when it comes to money? What must they do to overcome these challenges? And where are the signs of hope and progress when it comes to women and wealth?
When it comes to “making it,” the media loves to report on overnight successes, lottery winners, and tech companies that seem to come from nowhere to capture the imagination of the market. It is exciting to contemplate being handed a fortune and fantasize about spending it. Exciting, but also quite misleading.
“I think making mistakes and discovering them for yourself is of great value, but to have someone else to point out your mistakes is a shortcut of the process.”
Have you ever made a big financial mistake? You’re not alone. According to a Consumer Federation of America report from 2012, 67% of middle class American consumers (those with annual incomes of $30-100,000) owned up to a “really bad financial decision”, resulting in an average loss of $23,000.
“The greatest wealth is health.”
January is a popular time to make health-related resolutions and set goals to lose weight, exercise, or give up unhealthy habits. While people rarely make these resolutions for financial reasons, having a healthy body can actually lead to a bigger bank account!
“All I ask is the chance to prove that money can’t make me happy.”
~ Spike Milligan
Are people who make more money happier? What about people who save more? Can people be happy with very little? And how do your spending habits impact our satisfaction?