Life insurance can be an important tool in protecting your family members and loved ones. If you are having trouble paying to make ends meet, and need emergency cash to pay for life insurance, there are options out there, many of which may work for you. A few things to start with is something as simple as adjusting your current life insurance policy or switching insurance companies altogether. Others may find that a little help is what they need to keep their monthly insurance bill paid, or an emergency loan option as a short-term solution, so they can get back onto their feet.
Below is more information on options for emergency cash, along with some more information on life insurance.
Look into Your Current Life Insurance Policy to Potentially Save
There are several ways that you may be able to lower the cost of your life insurance payments, here are a few of the basics that policyholders should be aware of:
Adjust Your Current Policy or Switch to An Alternative Type.
In general, there are two types of life insurance:
- Term life insurance Policy—term life – like the name suggests- has coverage for the policyholder up to a certain amount of years. This range is usually from ten to thirty years. This is the more affordable option.
- Whole life insurance Policy—Whole Life insurance is also known as a permanent life insurance policy that provides coverage for the policy holder’s entire life. So as long as the premiums are paid, the insurance will last until the policyholder passes. Although usually steady, it can definitely change in terms of monthly expenses, overtime. Whole life is the more expensive option. It may be helpful to also know that traditional whole life, universal life insurance, variable life insurance, and variable universal life are all subgroups of whole life insurance.
And so, one of the easiest ways to lower costs is to switch from whole life insurance to term life insurance, this can usually be done with your current insurer, and sometimes may not involve the tedious process of canceling an insurance plan altogether.
However, keep in mind that while term and whole insurance overlap with their benefits (for example both have death benefits), whole life insurance does offer more protection for the premium cost.
Switch Insurance Companies Altogether
Another option you may want to consider is switching from one life insurance provider to another to save. Because life insurance canceling can be more complicated than something like car insurance, it is important to figure out things like the surrender value, and the pros and cons of switching insurance companies altogether.
Because life insurance can be difficult to navigate, many people turn to insurance brokers, or financial advisors to pick the right insurance products for them.
Bundle Your Life Insurance and Save
When you get different insurance types from the same insurance company, chances are that you will save. For example, you can look at car insurance, homeowners insurance, or renters insurance with the same company you receive life insurance from.
Assistance Programs that Can Help Pay for Life Insurance
Here are a few options that you may be able to turn to for help:
- How Your Employer May Help—in some cases, your employer may provide a group policy for life insurance, in some cases this can be a free benefit while other times it may be a low-cost option.
- Veteran Life Insurance Benefits — The United States Department of Veterans Affairs provides low cost and, in some cases, free life coverage for service members, their spouses, and families. If you have served, or are serving, they can be an extremely helpful resource for a financial emergency.
- Government Assistance to Help Pay for Bills—if you are not a veteran, but reside in the United States are financially struggling, then there are assistance programs that may be able to help. Contact your local social service office, for resources to government-funded solutions, and even nonprofit charities.
Taking Out a Loan for Emergency Cash to Pay for Life Insurance
Here are a few loan options to consider for emergency cash:
- Credit Cards—Credit cards can be a good way to pay or a large purchase. For those with good credit histories, credit card interest will generally be very low, and repayment flexibility.
- Car Title Loans— car title loans use the equity of a vehicle to make funding available. These are very flexible with eligibility requirements and can make funding happen very quickly. The only things to watch out with these is the interest rate (which can be fairly high),
- Personal Loans— a personal loan can be used for a variety of reasons. There are all kinds of personal loans out there, with different terms, interest rates, eligibility requirements, and amounts. And so, make sure to look around at several before choosing one to take out.
- Payday Loans— payday loans are secured by the borrower’s paycheck. They are fast and flexible, but they also come with quite a bit of interest. Additionally, they have to be paid back fairly quickly (2 weeks or so).
- Borrowing from Your Life Insurance Policy—if your insurance policy has cash value, you can borrow against it, (a life insurance loan). Keep in mind if borrowing from a term life insurance policy you will have a tax burden with the IRS on that loan balance. While borrowing from the cash value of a whole life insurance policy is tax-free. And so, consider income tax payments, when borrowing from your policy’s cash value.
- Home Equity Loans— as the name suggests, home equity loans use the equity of a home to make funding available for borrowers. For those who own their own home, going through the process of getting a home equity loan can be fairly simple.
Why Work with Max Cash Title Loans?
If a title loan seems like the right option for you, begin with the experts at Max Cash Title Loans. At Max Cash Title Loans, we are the #1 nationwide title loan marketplace. In addition to making the title loan process simple, fast, and transparent, the lenders we work with could provide our clients with all kinds of unique benefits. Here are a few that stand out:
- Low monthly payments 4
- Competitive interest rates 4
- Flexibility with loan terms 4
- No Hidden Fees 3
- Conduct the Entire Process Online
- Pay Off the Loan Early with No Penalties 3
- Keep and Drive Your Vehicle
- Get Approved Funds in 24 Hours 1 2 5
What Will the Title Loan Process to Look like With Max Cash Title Loans?
At Max Cash Title Loans, we know that you’ll need fast cash when applying for a title loan. And so, we made our title loan application as simple as possible. Here is what you can expect with our title loan process:
• Apply—our application takes a few minutes, apply online or over the phone.
• Discuss Eligibility with a Loan Agent— after you apply, a loan agent will contact you and discuss eligibility. Once you are eligible, they will begin the search for potential title loan lenders.
• Get Your Title Loan Funding—once a lender is found, a contract will be made. Once agreed upon by both parties, your loan agent will make the funding available for you.1 2 5 Loan proceeds are available in several different routes, talk to us about your preference. 1 2
Is the Surrender Value for Life Insurance Worth it?
Due to the impact of coronavirus/COVID, many people are finding they need to cut costs. Canceling your life insurance policy is known as surrender. You have the option to surrender your life insurance policy entirely at any time and receive the surrender value/payout. The surrender value will be the cash value minus any fees.
Keep in mind, If you choose this option your family/loved ones won’t get a death benefit (or may get a reduced death benefit, depending on the type of policy/ your savings left for them) when you die, which could leave them in a financial bind.
Get Started for Emergency Cash to Pay for Life Insurance Right Away
No matter what kind of emergency you are facing, there are options out there so you can continue paying your insurance bills and continue protecting the ones you love. When your savings account cannot cover the costs of getting back on your feet you’ll have to turn elsewhere.
To save some money, take a look at your life insurance policies and see if you can knock down those premium payments while keeping yourself insured. Another option to consider, especially if you are a veteran, are assistance programs, or low-cost insurance from your employer. For some borrowing a loan may be the fastest and best short-term option.
When thinking of a title loan for emergency cash, start with Max Cash Title Loans. Our services are fast and simple, which could mean a quick solution to make ends meet. 2 5 To apply for an online title loan, simply answer a few questions. Or give us a call at 855-561-5626. Get the emergency cash you need to pay for your life insurance and to keep your loved ones protected right away! 5