President | Founder, CLM Insurance Group, Delray Beach, FL
As long as your Globe Life insurance policy has accrued a cash value and there are not any outstanding loans against that balance then you can borrow against it. Loans on a permanent life insurance policy are meant to be paid back (in most scenarios). To maximize the life insurance products be careful and advise a financial advisor or agent prior to borrowing against the cash value in your policy.
Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
If it's a permanent life insurance policy that builds cash value, you can borrow from it. The amount that can be borrowed depends on how much cash value has accrued inside the policy.
When you borrow money from a life insurance policy, you're creating a loan as the money is expected to be paid back and loan's require interest to be paid on the loan. If the insured dies and there is an outstanding loan balance on it, the beneficiary would receive the death benefit less the loan amount and any interest due on the loan.
It may be helpful to discuss it with your agent before borrowing from the policy to find out more about what will happen (e.g. what's the interest rate that will be attached to the loan) when you borrow from the cash value.
That is a great question! The only things that you need to have in order to borrow from your Globe Life (or any company's life insurance policy) are these: First, that you are the owner of the policy. If Your parents bought it for you when you were young, and they are still the owners, you will not be able to borrow from it. They can, but you can't. You must be the owner of the policy. Second, it must be a whole life policy, as term policies have no cash value; And third, that there is an adequate cash reserve to borrow from. If the policy is fairly new, there may not be much to borrow from, or if there has already been a loan taken, you may not be able to take more cash out, without tanking the policy. My advice would be to contact your agent, or Globe themselves, (have your policy number handy) and ask them if you are good to borrow. Good luck, and thanks for asking!
.JPG){kind=avatar}
When you borrow money from a life insurance policy, you're creating a loan as the money is expected to be paid back and loan's require interest to be paid on the loan. If the insured dies and there is an outstanding loan balance on it, the beneficiary would receive the death benefit less the loan amount and any interest due on the loan.
It may be helpful to discuss it with your agent before borrowing from the policy to find out more about what will happen (e.g. what's the interest rate that will be attached to the loan) when you borrow from the cash value.