Using Cash Value from Life Insurance While Alive
- Whole Life Insurance: This type of policy accumulates cash value over time. You can borrow against this cash value to fund a home purchase.
- Universal Life Insurance: Similar to whole life, it offers more flexibility and also builds cash value.
Related Reading: Do you need life insurance to purchase a house
Using Proceeds from a Life Insurance Policy
Post-Death Scenario: The beneficiaries can use the death benefit from a life insurance policy to buy a home. This is common when the policyholder wants to provide for their family’s housing needs after their passing.
Comparing Methods of Using Life Insurance to Buy a Home
|Type of Insurance
|Borrowing Cash Value
|Using Death Benefits
|Any Life Insurance
|After Policyholder’s Death
Life insurance can be a versatile tool for purchasing a home, either through borrowing against its cash value while you’re alive or utilizing the proceeds after your passing. It ensures financial flexibility and security for your housing needs. Contact us today for a free quote.
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