You can also repay your debts with the help of your life insurance policy. However, you should know about the pros and cons of taking out money from your life insurance policy before you choose this option. The pros and cons are given below.
Pros:
• You will not owe money to any lender or creditor.
• You may get comparatively low interest rates on your loan.
• You’ll not get harassing creditor/collection calls if you’re unable to repay the loan within time.
• You may postpone the repayment period.
Cons:
• You cannot borrow money more than the specified limit.
• Your beneficiary will not get the full insured amount if you pass away before repaying the loan. In this situation, the insurance companies usually subtract the balance amount from the beneficiary’s benefits.
Therefore, if your beneficiary is dependent on your income, then it would be better to try out other options to pay off debt instead of borrowing money from your life insurance policy. As for example, you can take help of a debt consolidation program or a debt settlement program to repay your outstanding debts. It is advisable that you go for a credit counseling session to decide which pay off debt option suits you the best. | 
