Get Your Business Funded: Creative Methods for Getting the Money You Need

Life Insurance Options

If you have a whole life insurance policy, another option is to cash it in. The very nature of a whole life policy is that it grows in cash value the longer you own it and make premium payments on it.

Is this the right choice for you? That is a difficult decision. For most people who have children, life insurance is a critical component of being a responsible parent. It is also a vital component of a sound financial plan. Should something happen to you before you have earned enough to take care of your kids via your estate alone, life insurance is there to, well, insure that they are taken care of. Cashing in a whole life policy to fund what could be a risky business venture is, therefore, not often the best choice.

With that caveat in mind, here is how you do it, if you decide to:

• Call the insurance carrier. Find out what the cash value of the policy is and request the appropriate form.
• Fill out the form. You will likely have to have it notarized, so do that and send it back in. Your spouse may have to sign it as well.
• Get your check. It will probably take a few weeks.

One last, important note: As opposed to a whole life policy, it is very affordable to get a term life insurance policy. If you cash out your whole life policy, seriously consider replacing it with a term policy.