How can you use your life insurance as collaterol?
If you are borrowing money from a bank, the bank may require a collateral assignment of a life insurance policy in order to pay off the loan should you die prematurely.
A collateral assignment will pay the bank off first in the event of your death with any leftover paid out to your beneficiaries.
Once your loan is paid off, you can have the collateral assignment removed from your policy.
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