Can I Use My Life Insurance As Collateral?
0 POINTSContact Meview profileDavid RacichPROFountain Hills, ArizonaOnly the policy owner can authorize the policy cash values or assignment of the death benefit for collateral in securing loans or obtaining other assets. Every life insurance company has its own collateral assignment form and in certain circumstances a restrictive endorsement form. This can modify the first position of beneficiaries and should be discussed with legal counsel before moving forward.Answered on May 20, 2013+01+1 this answer
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63333 POINTSview profilePeggy MaceMost of the U.S.Yes, life insurance can be used as collateral for some loans. The Small Business Association (SBA) often requires term life insurance to be purchased as collateral for their loans. You simply fill out an assignment form that will allow the lender to take the amount of the death benefit needed to fulfill your obligation, then the rest would go to your beneficiary.Answered on December 17, 2014flag this answer
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