Can You Borrow Against A Universal Life Insurance Policy?
4249 POINTSview profileGary LanePresident, Lane Independent Agency, Southern CaliforniaYes, you can but be careful. Universal policies have the advantage of lowering your payments. When you borrow against them, the amount remaining to fund the policy is reduced. This may put your policy at risk of being underfunding. This would require you to put money into the policy to keep it functioning. Always consult with your agent when borrowing, so you do not underfund your policy. Thank you. GARY LANE.Answered on June 1, 2014flag this answer
21750 POINTSview profileJim WinklerCEO/Owner, Winkler Financial Group, Houston, TexasThat is a great question! Universal life policies do accumulate a cash value, so yes, you can borrow from it; if funded correctly, and assuming that investments work out with the promised returns it should be okay to borrow from. However, this kind of policy is a strange kind of animal. It is only guaranteed to last a certain period of time, and then the cash value becomes the premium that you would have had to pay to keep it going. If you borrow from the value, and aren't very careful, you can tank, or shorten, the life of the policy. Please consult with your agent before you borrow, okay? If you would like more detail, please contact me, and I'll fill you in. Thanks for asking!Answered on June 1, 2014flag this answer
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