Advantages of utilizing life insurance to repay debt
1. You may pay less overall interest if you pay off the debt faster.
2. You can lower your ratio of debt to income.
3. You can free up additional funds for savings and investments.
4. You are not required to repay it.
Negative aspects of utilizing life insurance to repay debt
1. By subtracting a portion of the cash value, you will ultimately reduce the death benefit.
2. You can end up having to pay surrender fees (a fee for withdrawing money during a set period of time, usually in the immediate years after opening a new account)
Do you believe you would profit from a cash-out option insurance policy? There are many companies who can assist you select a suitable plan.