life insurance

January 21st, 2007 by Questions

I have been quite ill for the past year, and my business (non-incorporated) went under. I have substantial debt including personal lines of credit, and am quite sure I will have to file bankruptcy. My concern is my whole life insurance policy– if I have to take the cash surrender amount as an asset and I lose this policy, I will no longer be able to get more life insurance at a reasonable rate. I have young children. Is there any way to keep the policy?

Questions

One Response to “life insurance”



January 22, 2007 at 3:08 pm, A licensed trustee said:

Yes, there are a couple of ways to keep the policy. The first is to find out what the cash surrender value (CSV)of the policy is and agree to pay your trustee (for the benefit of your unsecured creditors) an amount equal to the CSV.

In additon, deoending on where you reside and who your beneficiaries are, the policy may already be protected under provincial laws. I suggest you contact a trustee near where you live and discuss it with them.

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