The Final Cash Grab

I don’t generally dump on the Boomer generation but this article is a worthy exception. The concept of reverse-mortgages instead of gifting the family home to one’s children is abominable… but this…

5 ways to cash in on your life insurance policy while you’re alive

h ttps://www.foxbusiness.com/personal-finance/use-life-insurance-cash-value-while-alive

By Erika Giovanetti, 20 July 2021

Sponsored by Credible – which is majority owned by our parent, Fox Corporation, and is solely responsible for its services.

They’re not trying to scam you. They’re Credible!

Life insurance provides your loved ones with financial security in the event of your death…

Man, that was a long time ago. When a man was the family breadwinner, life insurance made sense. In the modern age of easy, his-fault divorce and CEO Barbies, not so much, although I did have a dismemberment policy for a time. This advertisement’s target demographic is obvious.

…but you may be able to cash in on your policy while you’re still alive.

You can take it with you! Even your life insurance! Why should anybody benefit from your death except you?

Whether you need a lump sum of money to pay for college or you need money for a down payment on a house, tapping into your life insurance policy can help you meet your financial goals.

Disingenuous. College kids don’t have valuable life insurance policies but those snowbird homes don’t buy themselves.

If you’re in the market for life insurance with living benefits, it’s important to understand how it works. You can compare life insurance policies on Credible’s online financial product marketplace.

1. Tap into your policy’s living benefit riders

Some types of life insurance come with policy additions, referred to as “riders.” These riders may offer living benefits that apply if you meet certain criteria. Here are a few examples of living benefit riders:

    • You’re diagnosed with a chronic, terminal, or critical illness – You may be able to withdraw up to 80% of your policy proceeds to cover health care expenses through illness riders.
    • You need long-term care – Nursing homes, hospice care and end-of-life services are extremely costly. Long-term care riders can help you cover these expenses.

AKA dismemberment insurance against not being able to work anymore. If easy divorce didn’t ruin the material benefit of this then universal basic income is about to.

2. Take out a loan from the policy’s cash value

A life insurance policy loan uses the cash value of your plan as collateral. Since you’re borrowing money from yourself, life insurance loans:

Don’t require a credit check

Have relatively low interest rates

May offer flexible repayment terms

Plus, the loan isn’t technically income, so it’s tax-free.

Now we’re talking Boomer! It’s tax-free because you’ll be dead when the bill comes due!

3. Make a withdrawal from the policy

In addition to borrowing from your life insurance policy in the form of a loan, you may be able to simply withdraw from your policy’s cash value.

For reasonable, Credible fees.

4. Surrender the policy to receive the accrued value

5. Sell your life insurance policy to a third party

The biggest drawback, though, is that you won’t have life insurance coverage. This leaves your beneficiaries without a payout when you die.

We’re used to it. Generation X. The ‘X’ is for ‘latchkey’ but we’re too proud to complain, so Generation X we be.

Meanwhile, a company that calls itself Credible is standing by to help you screw your kids, er, ‘beneficiaries’, for the last time. You can’t make this up.

By all means, Boomers, activate your own life insurance policy and ensure that your only legacies are debt, abandonment and slavery. Brag to God In Heaven that if any of your children survive as free men in their own country, it will be no fault of yours. Let me watch.

6 thoughts on “The Final Cash Grab

  1. When researching a chapter on debt, I was shocked to discover that those aged 55-64 who were in debt owed an average of 500K, mostly mortgage. These are probably the people trying to stay afloat by borrowing from their life insurance.
    Of course they’ll never pay these debts off but lenders are calculating that the interest plus estate will make it worth their while

    Liked by 1 person

  2. “…mostly mortgage.”

    And my relatives wonder why I’m not trying to build any equity, in a housing market that charges $1M for a two-bedroom condo.

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s