NLIC.org

Jimmie Said:

Is it standard policy to give a home loan without asking , borrower to have insurance policy ?

We Answered:

When applying for a home loan your credit report will be reviewed and you may be required to provide a number of other details, including: Employment and income records, Tax Returns for the last few years List of assets, List of liabilities and what you owe, Your budget showing monthly living expenses so that you can demonstrate an ability to pay.

http://www.worldbestloans.com/homeloans.htm

With this information you and your lender will be able to determine the kind of home loan and size of the right mortgage for you. In some cases, you can obtain a pre-approval or pre-qualified certificate, which shows how much you can borrow so that you can then shop for homes in an appropriate price range.

Miguel Said:

is it good idea to get loan insurance policy?

We Answered:

If you want coverage for your mortgage, don't you want coverage to pay the electric bill, too? Or how about groceries? Or putting gas in the car??

I don't like loan insurance policies, because the ONLY person who really benefits is the lender. If you WANT disabiltiy coverage, buy disability coverage - it will help pay ALL your bills, not just one.

Jason Said:

policy loan from life insurance interest pay to insurance company! why?

We Answered:

Contrary to popular belief, when you take a loan out against your insurance policy, you are not borrowing “your money”.

You are borrowing the life insurance company’s money, and the life insurance company is accepting the cash value of your policy as collateral for that loan.

To meet the IRS definition of a loan, the insurance company must charge interest on the money you borrow from them.

This maneuver is necessary for tax purposes. If you were to access “your” money, the government would require that you make a withdrawal. If you made a withdrawal, you might be subject to taxation on the money withdrawn; you might be subject to surrender charges; and you might upset the stability of the policy’s financial funding.

Notice: what I wrote (above) still applies to your comments about variable universal life. You can invest your money (cash value); gains on your invested money belong to you; you have all the rights of using your money to invest as you see fit. You can do all these things with your money because you borrowed the life insurance company's money.

Jesse Said:

is there any legitimate companies that would secure a personal loan with a life insurance policy?

We Answered:

Probably not the death benefit but they might allow you to use the cash value in the policy as collateral.

In most instances you have the option to borrow your cash value straight from the life insurance company if you have any.

Arnold Said:

Does taking a loan on a life insurance policy affect the payout if by chance the person dies?

We Answered:

Yes. Any unpaid amount from the loan, gets subtracted from the death benefit.

Theresa Said:

Is it good idea to get loan insurance policy?

We Answered:

well if you used to work you would get working benefits and that would help,not entirely clear your mortgage because it depends on how much money you are given.

Andrea Said:

has anyone heard of Loans International Limited - they want me to purchase an insurance policy to get a loan?

We Answered:

Where do you live??

It is illegal to require someone to purchase any kind of insurance on a unsecured personal loan in the U.S.