Depending on the policy, life insurance may be able to be used to purchase a home.
By DAVID RODECK, last updated on July 13, 2023. VIKKI VELASQUEZ verified the accuracy of this information.
First, your insurance policy might be accepted by lenders as collateral. You might have a better chance of qualifying for a mortgage at a lower interest rate if you put up your life insurance.
Second, if your life insurance policy has cash value, you could use that money to buy a house by taking a loan or withdrawing it.
Extra security can assist you with purchasing a house. You could use the policy as collateral for a mortgage, or you could use the cash value from permanent insurance to purchase the house.
In the event that you utilize your life coverage as security and kick the bucket prior to taking care of the home loan, the moneylender gathers from the passing advantage.
