In Canada, you can borrow from your whole life policy as soon as there is a cash value in the policy. If you pay the annual premium that could be day 2 of the policy.
Important to remember that if the amount borrowed exceed the adjusted cost base of the policy it with trigger a taxable policy gain.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.
You can borrow against a whole life policy when the cash value is in the positive range. You should look at your illustration pages to see the year the excess cash begins to show value. Most whole life insurance policies reach this threshold between years 5 and 7 depending on how the agent set up at or near target price. I would consult with your agent or customer service on not borrowing too much cash value and lapse your policy.
President, Lane Independent Agency, Southern California
As you build up equity, you can borrow against it in your permanent life insurance policy. This is one of the great benefits of permanent life insurance! Generally, it takes about two years to reach this point, as the initial year's premiums help defray the cost of setting up the policy. You can decide never to pay back the loan, and it is yours tax free to keep, but it will lower the death benefit, so do so only if necessary or pay it back if you can. Thank you. GARY LANE.
.JPG){kind=avatar}
Important to remember that if the amount borrowed exceed the adjusted cost base of the policy it with trigger a taxable policy gain.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.