Saving You Money For Life

Without credit cards, many of us wouldn’t be able to buy the things we want or need. They are great financial tools, especially in emergency situations, but many Americans have too much credit debt and are struggling to get out any time soon.

If you have a permanent life insurance policy (the kind with a cash value), you can borrow against it to pay off your credit card debt. Sure, you’re basically borrowing your own money and paying interest to use your own money, but if you’re struggling to find other ways to pay off your debt, this might be a good option for you. In most cases, the interest rate will be a lot lower than the interest you are paying on your credit cards.

However, keep in mind that the money you borrow will be subtracted from the total death benefit amount. It’s important to consider your family’s overall financial situation and determine if the remaining amount will be enough to support them financially if you died today. Only use your permanent life insurance policy’s cash value to pay off your credit card debt if you’re absolutely sure that your family will have enough money to live on when you’re no longer around.

For questions about the uses of permanent or term life insurance, contact a licensed life insurance agent at AccuQuote.

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