At Creative Risk Management LLC, serving the entire state of New Jersey, we can help individuals take out life insurance policies. Most people take out life insurance policies on their spouses or partners. But, life partners are not the only people you should take life insurance policies out on. If you have co-signed on a loan for someone, you may want to consider taking out a life insurance policy on them as well.
The Importance of Taking Out a Life Insurance Policy On Co-Signed Loans
When someone passes away, their debts are not always forgiven. This is especially true if there is a co-signed loan. If you co-signed on a car loan or a student loan and the person you co-signed for passes away, you are still responsible for paying off that loan. If you fail to do so, the lender could take legal action against you, including garnishing your wages or garnishing your wages or bank account.
As such, taking out a life insurance policy on someone that you co-signed a loan for helps to ensure that you can use the life insurance proceeds to pay off a loan in the event someone passes away unexpectedly.
If you have co-signed on a loan for someone, and you would struggle to pay that loan off yourself if that individual suddenly passed away, you should consider purchasing life insurance on that person. If you are interested in learning more about life insurance policies and who you should consider taking a policy out on, reach out to the team at Creative Risk Management LLC, serving the state of New Jersey. We can help you with all of your life insurance needs.
