The large amounts of unpaid balances push down their credit score and boost their debt - to - income ratio. (growingfamilybenefits.com)
The repayments that you then make to your life insurance policy will usually have a low rate of interest — and, if you do not end up paying back these funds, the amount of the unpaid balance will be deducted from the death benefit that your beneficiary receives. (cedaredlending.com)
If you can't, it's considered a premature distribution, subject to regular income tax and the 10 % early withdrawal penalty on the amount of the unpaid balance. (goodfinancialcents.com)