Newly found Life Insurance policy - Question about Loans.

by rcking » Fri May 15, 2015 08:52 pm
Posts: 1
Joined: 15 May 2015

Hello,

Recently my father passed away, and unbeknownst to me, he had taken out a life insurance policy for me a couple months after I was born; I'm now 30. I found this out after receiving a bill to pay the monthly premium, which was confusing to say the least, especially with this being my first foray in life insurance. Also, to make matters worse, the next beneficiary/owner in succession is my mother, whom he has been divorced from for many years.

Now, I'm recently married and looking to be a first time homebuyer in the near future. Right now, the cash value is looking good to me and will help me get there, but there was a loan taken out on it, which is at about 67% of the total cash value.

Since the policy has moved over to me (or my mother by the way it was written?), does the loan become my responsibility with it as well, or is that covered through some other means?

Also, what other options are out there, pros/cons, etc. Any feedback is greatly appreciated.

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