Using Life insurance policies to flip houses
I have zero knowledge and I’m interested in learning. Currently have life insurance policies. I was told that you could use your life insurance policies to borrow money for renovating property. If there is any information available please advise. Thank you in advance!
Most Popular Reply
Only some type of life insurance policies offer loans. These policies are usually permanent life insurance like Whole or Universal Life Insurance policies. Also, they need to have been issued with the goal of cash value accumulation as regular policies are usually crafted for the most death benefit with the lowest premium cost, limiting the cash value.
All the information of your current policies were given to you in the initial contract. You can also consult with your agent to tell you if you can borrow from your policy.
If you want to get a policy that is designed properly for high cash value accumulation you need to find an agent who is knowledgeable and willing to sell them as the agent is getting a lower commission on them than regular policies.