1. 61667 POINTS
    Steve Savant
    Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
    Permanent cash value life insurance can accumulate cash values tax deferred and can be borrowed against by the policy owner. Keep in mind that surrender charges may limit the account vales you can borrow and like all borrowing, there is an interest charge for the policy loans: zero net cost, wash, spread, direct recognition and participating policy loans.
    Answered on August 15, 2013
  2. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    You can only borrow from life insurance that has cash value. Term life insurance does not have any cash value, so you cannot borrow against Term insurance. Whole Life and Universal Life are both permanent policies that can be borrowed against, as long as enough cash value has accumulated to borrow from.
    Answered on September 2, 2013
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