Are there any banks in Maryland that accept term life policies as collateral?
Total Comments: 4
Posted: Thu Sep 22, 2011 05:44 am Post Subject:
Probably.
Posted: Thu Sep 22, 2011 09:06 am Post Subject:
Term life insurance has no cash value. Thus, policyholders cannot take out loans directly from the insurer.
However, there might be certain banks that do accept term policy as collateral and you may use the term life policy for a traditional bank loan or cash advance personal loans.
Posted: Thu Sep 22, 2011 10:05 am Post Subject:
you may use the term life policy for a traditional bank loan or cash advance personal loans
Most banks will only accept a term policy as collateral for a loan whose term is shorter than that of the policy. And "cash advance personal loans" are probably not in the list of loans they would provide with any kind of life insurance as collateral -- banks don't make those kinds of loans these days, the loan sharks do.
Posted: Thu Sep 22, 2011 10:42 am Post Subject:
If collateral is needed because the bank doesn't think that you are a good credit risk, term insurance won't be accepted.
If collateral is needed because the bank thinks that you are a good credit risk, but is afraid that it won't get paid back at death, then term insurance is acceptable collateral if it is for a long enough term.
Posted: Thu Sep 22, 2011 05:44 am Post Subject:
Probably.
Posted: Thu Sep 22, 2011 09:06 am Post Subject:
Term life insurance has no cash value. Thus, policyholders cannot take out loans directly from the insurer.
However, there might be certain banks that do accept term policy as collateral and you may use the term life policy for a traditional bank loan or cash advance personal loans.
Posted: Thu Sep 22, 2011 10:05 am Post Subject:
you may use the term life policy for a traditional bank loan or cash advance personal loans
Most banks will only accept a term policy as collateral for a loan whose term is shorter than that of the policy. And "cash advance personal loans" are probably not in the list of loans they would provide with any kind of life insurance as collateral -- banks don't make those kinds of loans these days, the loan sharks do.
Posted: Thu Sep 22, 2011 10:42 am Post Subject:
If collateral is needed because the bank doesn't think that you are a good credit risk, term insurance won't be accepted.
If collateral is needed because the bank thinks that you are a good credit risk, but is afraid that it won't get paid back at death, then term insurance is acceptable collateral if it is for a long enough term.
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