Any Hope for Me?

[MoLynn]

Hi. Question. I am in need of a personal loan and heard about using a life insurance policy as collateral. Is this something that can be done? Does anyone know of any lenders in California, that deal with bad credit, willing to fund something like this? I can get the life insurance policy (10 year term; $100,000) but I need to find someone to fund the loan. Looking to get about $25,000 in hand. Can someone please help me out. Thanks for any help/advice anyone can give me.

 

[STIBROKER]

but what if you live....how is that going to help the lender.....

 

[MoLynn]

I plan on living; thanks for asking. My plan is to use the life insurance only as collateral. Making monthly payments won't be a problem. I will be able to pay the loan back but because of my bad credit, I'm trying to think of ways to strengthen my chances of getting the loan.

 

[STIBROKER]

My plan is to use the life insurance only as collateral.

But there is no cash in the policy....why would they accept that as collateral. Pretty sure they want something they can repo and not have to kill you.....

Making monthly payments won't be a problem. I will be able to pay the loan back but because of my bad credit,

Really....refer to above......

 

[Josh]

The term policy won't fix the bad credit, but it may be a condition of the loan. It is no collateral, unless you're stating that they can kill you to claim the insurance money if you don't pay the loan, but that would be insurance fraud.

 

[Newby]

You have been told wrong. Some lenders may REQUIRE life insurance on business loans. But term life insurance is worthless as collateral.
Whole life has collateral value but not until it has built up for years.

 

[Guest]

I plan on living; thanks for asking. My plan is to use the life insurance only as collateral. Making monthly payments won't be a problem. I will be able to pay the loan back but because of my bad credit, I'm trying to think of ways to strengthen my chances of getting the loan.

Again, what if you live?

Think about how a loan is secured, usually with property, such as a car, you dont pay it back, they repo it.

You use life insurance as collateral, you dont pay the loan, will they kill you to get their money back.

No offense, you admitted you have crappy credit, so why would a loan company take a chance on you? Just because you say you can pay it back? Sounds like you agreed to that already and havent done it.....

 

[Crabcake Johnny]

Please don't feed the troll.

 

[ScottLFB]

You must have to "know a guy" in order to get the job at the loan collections office for Killing People to get the claims to pay out..

 

[arnguy]

Term life insurance as collateral----that's a good one. The answer is a resounding no. As was stated you may have to have term life ninsurance when you secure a loan, but without cash value it is worthless as collateral!