Can You Buy a Home with Life Insurance?

Shawn Plummer

CEO, The Annuity Expert

Using Cash Value from Life Insurance While Alive


  1. Whole Life Insurance: This type of policy accumulates cash value over time. You can borrow against this cash value to fund a home purchase.
  2. 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

MethodType of InsuranceUsage TimingPurpose
Borrowing Cash ValueWhole/Universal LifeWhile AlivePersonal Funding
Using Death BenefitsAny Life InsuranceAfter Policyholder’s DeathFamily’s Housing


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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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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