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colonial penn life insurance Information |
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Life Insurance Tip:
Avoid Raiding the Piggy Bank
If you have owned a whole life or universal life policy for several years, you probably have accumulated some "cash value" in your account. Some companies allow you to take out loans against the cash value of your policy. While this may seem like a good idea, it's essentially raiding the piggy bank, taking money from your insurance payout in two ways. First if you don't pay back the loan, that amount won't be paid out to your heirs. Second, since that money won't be in your account to be invested by the insurance company, you will lose out on the earnings and interest that money would have generated during the period of your loan. So think twice before taking a loan against your insurance policy.
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