I have an insurance policy at work that is twice the amount of my yearly income. Can I use this type of life insurance for collateral on a personal loan?
Insurance provided as part of an employment package is almost always term insurance, which has no cash value; therefore, you probably cannot use it as collateral, because an insurance policy with no cash value has no collateral value to a lender. The premium payments are like lease payments on a car. Neither involves any build-up of equity.
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Insurance provided as part of an employment package is almost always term insurance, which has no cash value; therefore, you probably cannot use it as collateral, because an insurance policy with no cash value has no collateral value to a lender. The premium payments are like lease payments on a car. Neither involves any build-up of equity.
