whole life insurance

[errandteam]

I intent to take a large policy loan against my participating whole life insurance policy to purchase an automobile. I am aware that if I die, the amount of life insurance payable will be reduce reduced by the amount of the outstanding loan. I intend tos repay the loan, but concerned that my insurance benefit could be deleted if I were to die any time soon. which divided options would be most likely to ease my concern.

[boxtops]

Why don't you leave your whole life policy alone, but take out a new Decreasing Term Assurance policy which will only last for the duration of the loan? The sum assured then reduces as you pay back the loan.

[Kayless]

There is no such thing as life insurance, do you mean life assurance?

[BenDToy]

What a strange thing to say Kayless.

!) There appears to be a significant number of very large and reputable organsiations who would beg to differ. (see the advert panel to the right for a number of obvious examples - are you suggesting that they are selling something which doesn't exist?)
2) We all know what the OP means so why did you feel the need to say anything?
3) If you genuinely think this is the case then why do you feel the need to ask what the OP meant in their question?

Given that the purpose of this site is to provide people with answers to their questions, in what way do you feel that you have been helpful?

[Kayless]

They use the word "Insurance" to not confuse. Insurance is for something that might happen, assurance is for something that will happen. The US also use insurance for everything so it is understandable that many companies use Insurance when they really mean Assurance.
http://en.wikipedia.o...nsurance_vs_Assurance