New answer on: Can I Borrow Money From My Life Insurance?

By: Peggy Mace

Peggy Mace — Wed, 17 Dec 2014 16:00:31 +0000

If you have Term life insurance, there will not be any cash value to borrow from. No lapse Universal life insurance may have minimal to no cash value, making it impossible to borrow from that type of policy, as well. Whole life, or Universal life which has been funded heavily, will have enough cash value to borrow from after several years, or possibly earlier.

By: Tim Hamilton

Tim Hamilton — Fri, 16 May 2014 04:31:20 +0000

Assuming you have a permanent life insurance policy that builds cash value(like Whole or Universal life) it can be an excellent source of funds. However, you should proceed with caution because you do not want to withdraw too much. Contact your agent or your insurance company's customer service department to learn what they recommend. You might also ask them if you would be better off just withdrawing the needed cash. There are different consequences when you withdraw funds in lieu of borrowing.

By: David Racich

David Racich — Tue, 28 May 2013 14:39:24 +0000

If you have cash value life insurance and you have cash values in your account, then yes you can borrow money from your policy. Keep in mind that there are several policy loan provisions that may assess a interest charge: zero net cost loans, wash loans, spread loans, direct recognition loans and participating loans. The loan cost could be zero up to 3.50%.

By: Larry Gilmore

Larry Gilmore — Tue, 28 May 2013 03:55:11 +0000

Can you borrow money from your life insruance policy? Yes, you can borrow from your policy, usually with an email or a phone call funds can be wire transfered into your checking account within a few days. You know what is really nice about this option? You don have to ask permission or justify your need to somebody in a cubicle to get access to your funds.