To give you a simple answer, yes, you can do this in a form of a policy loan if you own a Whole Life policy. You will be charged interest, so it a good idea to at least to pay the interest. You will not have a set payment schedule and failure to pay will not mess up your credit rating. The amount of the loan plus interest will be deducted from the death benefit when you die.
Yes or no.....Depends on the type of Life Insurance you have.
If you have a permanent policy such as a Universal Life or Whole Life, and there is a cash value available, you can either withdraw this or take it as a loan. Be aware of the "rules" on the loan types available.
Also, if you have a Return of Premium Term product, and this has been in force for say over 5 years, then you may have cash cash value available as well. You can take this as a loan. If you surrender the policy, you will get some cash value back however I do not recommend taking this action unless there is a very good reason to do so.
Regional Marketing Director, Capital Choice Financial Group,
Yes, you can borrow any available cash from a cash value policy. The company will charge interest on the amount borrowed which is usually between 6% and 8%. The face amount will then be decreased until the loan is paid back. Let me give you a side note here. This is a really bad use of your money. First of all the cash values don't begin to grow until around the 3rd year then from then on it grows at a very low rate of interest designated by the company. Secondly, to get any cash values out(that's your money) you must borrow the money out at 6% to 8% When you die your family gets only the face amount and the cash values go back to the company! As you can see, a very poor use of your money!
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If you have a permanent policy such as a Universal Life or Whole Life, and there is a cash value available, you can either withdraw this or take it as a loan. Be aware of the "rules" on the loan types available.
Also, if you have a Return of Premium Term product, and this has been in force for say over 5 years, then you may have cash cash value available as well. You can take this as a loan. If you surrender the policy, you will get some cash value back however I do not recommend taking this action unless there is a very good reason to do so.