Is it wise to borrow against the payout of a life insurance policy to pay for a bucket list wish for my mother, who is in declining health?

My mother is 78 years old and is in declining health. She has a bucket list item that would cost between $3,000 to $5,000 and has no way of coming up with the money. She has a whole life insurance policy with a death benefit of $100,000. Her beneficiaries would not suffer financial hardship if the payout were reduced. Would it be prudent to borrow against the payout so that she could fulfill her bucket list wish?

 

 

Insurance, Life Insurance, End of Life
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March 2018

Based 100% on your statement that the beneficiary would not suffer financial hardship if they didn't get the full death benefit I would totally say use some of the money to check some items off her bucket list.

 

Just make sure you don't borrow so much that the policy will lapse.  We don't want to create a financial hardship for your mother, or cause her any undue stress.

 

Best of Luck.

March 2018
March 2018