Can I use my company life insurance to pay for my housing loan?
Company Life Insurance or a Group Life Insurance is a security on employees’ lives that is owned by the employer, with benefits payable either to the employer or directly to the employee’s families. Group Life Insurance was originally purchased on the lives of key employees and executives by a company to hedge against the financial cost of losing key employees to unexpected death, the risk of recruiting and training replacements of necessary or highly trained personnel or to fund corporate obligations to redeem stock upon the death of an owner. This use is commonly known as “key man” or “key person” insurance. [Source: Wikipedia]
So to answer the question, if you can use the company life insurance of after you resigned (or even if you’re still with the company), the answer is NO. Life insurance can only be used by the company for the employees family, in case of sudden death. And not for use anytime you want it or to be used for loan payments.
The fact that you are no longer part of the company, you are no longer entitled to t
Another is, the benefits of life insurance can only be used or given to its beneficiaries, the moment the plan holder dies. If the plan holder is still alive, you cannot use the benefits of a life insurance plan.
That is why estate planning is very important. Personal or Individual life insurance must be equal to or greater than your total assets. Coz remember in order for property be transferred to the heirs, estate taxes should be paid first. If you are unprepared financially, the heirs will have to shoulder the burden of having to pay for your estate taxes. Hope this helps.
References:
Investopedia – https://www.investopedia.com/terms/g/group-life-insurance.asp
