What To Do When Home Equity Runs Out

Declining real estate values and an inability to tap into home equity are formidable challenges for people who were at one point hoping to count their home as an asset in retirement. However, there are multiple ways homeowners can lower their dependence on their homes as an asset or lower their monthly housing costs in general. According to the Wall Street Journal, one of these options is permanent life insurance. Unlike term life insurance, permanent life insurance can build up a cash value, grows tax-deferred, and can be accessed via a loan if necessary. Borrowing against the cash value of this insurance policy can be a great boon in a market where borrowing against a home is much tougher than it used to be. Additionally, permanent life insurance pays out dividends, which allows policyholders to add more cash value to their policies. And for those closer to retirement, most permanent life insurance policies have a feature allowing policyholders to annuitize the value of the policy, so it can be used to supplement retirement income as well. | Read More