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Oregon Life Insurance: Cashing Out Your Life Insurance Policy

 

When you think of life insurance you probably think of it as something that will offer benefits to those who you leave behind. While this is generally true, there are ways to cash out your Oregon life insurance policy and get at least some of the benefits while you are still living.

Cashing out your Oregon life insurance policy is possible in several different scenarios. Here are the most common instances when you may be able to receive some of the benefits of your policy.

 

Oregon Life Insurance: Terminal Illness

If you are diagnosed with a terminal illness and have either a term life or whole life insurance policy, then you may be able to cash out a portion of your policy to meet the needs you have while still living. Not all policies allow for this, so make sure when you are purchasing a policy that this is an option. In general you can expect to receive 50 to 75 percent of the value of the policy with this type of payout.

 

Oregon Life Insurance: Critical Illness

 

There are some Oregon life insurance policies that will pay out if you suffer a critical illness that is not terminal: curable cancer or heart attack are examples. Similar to a terminal illness payout, you may be able to access a portion of the death benefit to help defray medical costs, rehab costs and possible long term care costs. The payout for a critical illness will generally be about what you would receive for terminal illness or less.

 

Oregon Life Insurance: Life Insurance Dividends

Some life insurance polices also offer an investment component that allows the policy to grow over time if the investment goes well. Here are the types of policies that offer the possibility of earning dividends.

 

  • Whole life insurance policies
  • Variable life insurance policies
  • Universal life insurance policies

 

The risk involved as well as the expected rate of return varies according to each individual policy. However, universal life insurance policies are generally the most risky and have the most potential for the highest rate of return.

Many providers consider variable and universal life insurance policies as simply variations or types of whole life insurance policies. Either way you look at it, these policies offer an investment opportunity with a rate of return that can allow you to earn dividends off of your Oregon life insurance policy.

 

Oregon Life Insurance: Loans against Your Policy

It is not that uncommon for people to take out personal or business loans against a life insurance policy. Most lenders will not offer a loan against a term life insurance policy because there is no guarantee that there will be a death benefit paid out. However, if you have a whole life insurance policy it is possible to get a loan with the policy as collateral.

If the loan is not repaid by the time you pass away, then your whole life insurance policy will first pay off the balance of the loan and the rest will be left to beneficiaries. You can only borrow against the cash value of the policy and not the face value.

 

Oregon Life Insurance: Surrendering Your Whole Life Insurance Policy

You can, in some cases, surrender your whole life insurance policy for the cash value of the policy. The cash value is the amount that builds up in the policy according to the premiums you have paid in over time. Depending upon the specifics of the policy there may be other fees or qualifications, but most Oregon whole life insurance policies will allow you to surrender the policy for its cash value

 

Saving Money on Oregon Life Insurance Policies That Offer Flexibility

Oregon life insurance policies that allow you the flexibility to receive proceeds from the policy are generally a little more expensive. This does not mean that you cannot find a good deal on these types of policies. Smart shoppers can always find a good deal and if you take the time to get Oregon life insurance rate quotes, then you will have enough information at your fingertips to choose the best deal.

You should seek to get about 5 different rate quotes to give yourself enough options to choose from. You will be amazed at how quickly and efficiently you can get these quotes from reputable life insurance providers and will be happy to see just how much money you can save on your Oregon life insurance policy.

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