Can You Take Money Out Of A Whole Life Insurance Policy?
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63333 POINTSview profilePeggy MaceMost of the U.S.Yes, you can take money out of a whole life insurance policy by borrowing or surrendering it. If you borrow money from your whole life insurance policy, you can still keep your death benefit intact if you pay back the money with interest over time. if you surrender the cash value, you lose the death benefit from your policy, as well.Answered on November 11, 2014flag this answer
10968 POINTSview profileTim WilhoitOwner, Your Friend 4 Life, Brentwood TNYes, if there is enough of a cash value in your whole life policy you can take out money. The first 5 to 7 years usually pay for the cost of insurance in a whole life. Normally you will see a cash value after those years pass. It is better to borrow the money than to cash it out. As Peggy pointed out it keeps the face amount intact. Also, you may borrow the money tax free where as if you cash it out you will pay taxes on your gains.Answered on November 11, 2014flag this answer
4249 POINTSview profileGary LanePresident, Lane Independent Agency, Southern CaliforniaYes you can, but have you thought about an Indexed Universal Life Policy? With the right company and plan, you can get money out for things such as retirement, completely tax free (as a non repayable loan) and the money should be much higher than with a standard whole life policy. Talk with an experience agent. Some products are limited as to who can sell them, since they are specialized policies. Love to help you. GARY LANE. Thank you.Answered on November 11, 2014flag this answer
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