Can I Borrow Against My Universal Life Insurance?
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63333 POINTSview profilePeggy MaceMost of the U.S.Yes, you can borrow against Universal Life Insurance, as long as there is enough cash value accumulation from which to borrow. You must be careful to observe policy guidelines so that you do not lose the guaranteed death benefit. Some people borrow from Indexed Universal Life as a source of tax favored retirement income.Answered on October 28, 2013flag this answer
220 POINTSview profileTimothy HiderFounder, Momentum Risk Transfer, Garden City, NYThe short answer is yes, you can borrow money from your universal life insurance policy, or other permanent - cash value life insurance policies. Understand the mechanics and costs associated with borrowing from your policy. This is an area that many agents and consumers are not all that familiar. You do not want to incur taxes as a result of borrowing too much and/or lapsing your policy. Consult with an experienced life insurance agent to help determine the best course of action. Careful planning and monitoring cash value life insurance policies is the best course of action.Answered on November 13, 2013flag this answer- 63333 POINTSview profilePeggy MaceMost of the U.S.Yes, you can borrow against your Universal Life Insurance policy, as long as there is sufficient cash value from which to borrow. Purchasing Indexed Universal Life and overfunding it with more premium than is needed is a good way to accumulate cash value that you can borrow from tax free later on.Answered on September 8, 2014flag this answer
37376 POINTSview profileDavid G. Pipes, CLU®, RICP®Business Development Officer, T.D. McNeil Insurance Services, Fresno, CaliforniaA universal life policy is designed to accumulate money to pay for the ever increasing annual cost of life insurance as you age. The policy owner can borrow against the cash value at the rate stated in the policy. The tricky part is that in a universal life policy there is a tendency to underfund. When you borrow money from an underfunded policy you advance the date that the policy will not be able to maintain itself at the current premium.Answered on September 8, 2014flag this answer
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