Federal Law: Assumption of Mortgage After Death Explained
Federal Law: Assumption of Mortgage After Death Explained
Dec 30, 2024
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If you pass away with an outstanding policy loan, the insurance company simply deducts the balance from the death benefit. For example, a $1,000,000 policy with a $50,000 loan would pay out $950,000 to your beneficiaries. Comment
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TikTokzerafafinancial
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If you borrow $50,000 from a policy with a $1M death benefit, your beneficiaries would receive $950,000 if you passed away with that loan outstanding. A policy loan is essentially an advance against your death benefit. The insurance company simply deducts what’s owed and pays out the difference income tax-free. Comment
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