If you have a life insurance policy with an accumulated account value, you may have the option to borrow against a portion of it. Welcome Funds can help you explore this type of loan, which often offers better interest rates compared to traditional bank loans. When you borrow against your policy, the amount will be deducted from your death benefit until you repay it.

Life Insurance Loan

Many universal life policies allow policy owners to borrow money from the insurance company using their cash-accumulation account as collateral. The loan terms, including interest rates, depend on the specifics of your policy. The amount you can borrow is typically based on the value of the cash-accumulation account and the terms of the contract. One advantage is that you don't need to make regular payments on the loan, although interest may accrue on the outstanding balance. However, it's important to note that taking a loan from your life insurance policy will reduce the death benefit intended for your beneficiaries. Moreover, an unpaid loan with accruing interest can decrease the policy's cash value, potentially leading to policy lapse if sufficient premiums are not paid. If you are looking for alternatives, Welcome Funds offers options such as selling your life insurance policy for cash.

Life Settlements: Selling Your Life Insurance Policy

Another option to consider is a life settlement, which allows qualified policy owners to receive a cash advance on their life insurance coverage. A life settlement involves selling the policy to a licensed financial institution known as a life settlement provider. In this transaction, the buyer assumes all rights, title, and beneficial interest in the policy and becomes responsible for future premium payments. The sale price is typically less than the death benefit but more than the cash surrender value, and it is determined based on factors such as the policy's death benefit, annual premiums, and the insured's life expectancy.

Life settlements provide a regulated and secure way for policy owners to sell their policies at fair market value. Welcome Funds, as a life settlement broker, maximizes the sale of life insurance policies through an auction platform where the highest bid usually wins. By selling a policy, the owner can alleviate the financial burden of rising premiums and use the proceeds to cover medical bills, living expenses, or any other purpose they choose.

Welcome Funds: Your Partner in Life Settlements

To determine if you qualify for a life settlement or to get a free, confidential appraisal of your life insurance policy, please visit our website at or call us at 877.227.4484. We are here to assist you and provide the information you need to make informed decisions about your life insurance policy.

Loans On Life Insurance Policy