You can borrow from your life insurance policy by contacting your insurance company and requesting a loan. You may need to complete a form and you usually can borrow up to 90% of the cash value. The specifics will be detailed in your policy wording.
In Canada, when you borrow you will trigger a taxable gain if the amount borrowed exceeds the adjusted cost base. Be sure to check with the company concerning any tax consequences involved with borrowing. When/if you repay the loan you will receive a credit for this. Using the policy as collateral and borrowing from a bank does not trigger a taxable gain.
A reminder, if you do not pay the interest on the loan, it will compound and could put the policy at risk of lapsing.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.
President, Lane Independent Agency, Southern California
If you have permanent life insurance, like whole life, you can borrow against it, from any equity which you would have earned, after about two years. You merely contact your life insurance agent, or the carrier direct if you do not have an agent any longer, and inform them of your desire to borrow against your policy. They will send you a form asking for the relevant information. All this can be done within one day. You can then have the funds direct deposited into your checking account or have a check sent to you. Thank you. GARY LANE.
That is a great question! You need to have a whole life policy to be able to borrow anything. Term policies have no cash value to borrow from, so the first step is to determine what policy you have. The second step is to see how long the policy has been in force. If it has only been a year or two, in most cases there won't be anything yet to borrow. If the policy is a few years old, the company can tell you what your borrowable amount is. They will send you a form, and after processing it, a check. Hope that helps, and thanks for asking!
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In Canada, when you borrow you will trigger a taxable gain if the amount borrowed exceeds the adjusted cost base. Be sure to check with the company concerning any tax consequences involved with borrowing. When/if you repay the loan you will receive a credit for this. Using the policy as collateral and borrowing from a bank does not trigger a taxable gain.
A reminder, if you do not pay the interest on the loan, it will compound and could put the policy at risk of lapsing.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.