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Answered 2013-05-31 20:54:14

No. Only whole life insurance policies (sometimes called "permanent insurance") accumulate cash value. Policy loans are generally available from the accrued cash value. Since term insurance does not gather cash value, policy loans are unavailable.


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One can get a loan for life insurance from a few locations. There are a few banks that will allow you to take out a loan using your life insurance payout as collateral.

Not sure what you mean credit? Some allow you to take out a loan or actually cash in the policy. Contact the issueing agent.

Yes, most life insurance policies that accumulate cash value give you the option to take loans, not to exceed the cash value amount. It does not matter if the life insurance premiums are paid from an annuity.

Loan insurance protects you in event of something happening. If you die, your relatives are not responsible for making loan payment. I highly suggest loan insurance to everyone who wishes to take out a loan.

Either insurance or the estate. Some lending institutions provide "credit life insurance" which pays off the loan. If that is not part of the loan, the estate will be required to sell assets to cover the loan.

If you are terminally ill, many policies will allow withdrawals.

when u first get loan , it has insurance on it, been paying on it til loaner has passed away. does that insurance expires before loan paid off or til it paid off. loaner died jan 30 2012 and loan is paid off 2/14/2014

Generally, no. Only whole life policies accumulate equity.

A Direct Sales Executive in LIC is someone who represents the Life Insurance Company of India directly to consumers in order to sell policies and take claims on insurance policies.

A policy loan is available only against a whole life policy, not a term life policy. Whole life accumulates cash value and a term life policy does not. The insurance policy will specify the interest rate that will accrue on the loan. The loan does not have to be repaid, but interest will continue to accrue if it does not. The insurance company will permit only a specified percentage of the cash value to be borrowed, and there must be a sufficient accumulation of cash value to a policy loan to be made. You should contact the insurance company directly to make arrangements for the loan.

Yes, if your life insurance policy has accumulated cash value. Not all life insurance policies will accumulate cash value: for example, term life insurance policies will not accumulate any cash value. Whole Life and Universal life policies can accumulate cash value and the policy owner can take loans in the limit of the cash value (some companies limit loans to 70 - 80% of the cash value).

That depends upon the terms of your loan; typically additional insurance called "credit life" needs to be purchased on the value of the loan.

No, you don't pay for it. An interesting thought, but it won't work.

Life insurance companies offer no exam life insurance policies and comparison quotes over the Internet all the time. Life insurance brokerage companies work with life insurance providers to make no exam life insurance policies highly available and because these brokerage companies work for multiple life insurance providers, they can often make comparing policies very simple to do. What is no exam life insurance? The term no exam refers to no medical examination. Life insurance providers are betters, and the like to bet on winners based on a set of statistical scores that indicate whether a person is more or less likely to die based on their medical history. For that reason, many life insurance policies require a medical exam, but for people with a problematic medical history or those who have pre-existing medical conditions, it's not possible for them to qualify for a life insurance policy that requires a medical exam. Therefore, many life insurance providers have designed no exam life insurance policies to cover people who either don't want to or can't take a medical exam and be qualified for a life insurance policy. To shop for no exam life insurance, a person can either work with an agent or do their own research using the Internet. A simple search engine search for 'no exam life insurance' will yield a vast number of results, but you may find it's best to work with the recognized life insurance broker companies as they have access to a wider number of life insurance policies and can make comparing no exam life insurance policies much easier to do. After you find a list of no exam life insurance policies you may qualify for, you'll want to determine how much life insurance coverage you need and what type of coverage you need: term or whole. A term policy covers the insured for a period of time – the term of the policy. A whole policy covers the insured over their entire life as long as premiums are paid. Term policies by default require less in premiums than whole policies.

Depends on the type and length of the policies (yearly car policy vs. mortgage insurance vs. whole life).

The agent needs a life insurance license. He also needs to be registered with FINRA. The insurance license is issued by the state insurance regulator. He will need to take a life insurance class that is typically a one-week class and take an exam. To be registered with FINRA, he will need to either self-study or take a class and take state securities exams and general securities exams.

Only whole life insurance, not term, accumulates cash value from which a loan may be taken While the loan does not have to be repaid, if it is not, the loan plus accrued interest will be deducted from the death benefit. If you are changing from whole life to term within the same company, it may permit you to pay a higher premium for the term in order to pay off the policy loan on the whole life, but this would be unusual. It would make for a far cleaner transaction to pay off the loan and switch to term coverage.

Not quite sure but I believe a wash loan is when you take a loan from your cash value life policy and pay it back with interest, most of the interest goes back into your own account with the insurance company taking a very small percentage.

Yes, but only if it's a cash value type of policy, not a term policy.

You can obtain a loan on the policy. This depends on the terms and conditions of the insurer.

If a company was liquidated and there were in force policies at the time, they can still be paid by your state's Life Insurance Guaranty Association, which is a group that pays claims for insolvent companies and then assesses the costs to all other life insurers in that state. You can contact your state's insurance Department to find out how to reach the Guaranty Association.

Now a Days to take an Life Insurance policies in Banks pan card is compulsary,If we have a pancard it can also be used as a proof.

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