When Can You Borrow Against Life Insurance?
0 POINTSContact Meview profileDavid RacichPROFountain Hills, ArizonaAssuming you have cash values and the surrender charge provisions allow policy loans during the surrender period, access to cash values are fairly straight forward. What’s not straight forward nor is there any real industry standard in the charges for borrowing your money from your policy. The following current company practice of policy loan charges may be in your contract: (These are basic explanations. Each policy uses different language to express its provisions)- Zero net cost loans – the charging and crediting of the same rate 31 days apart
- Wash loans – the charging and crediting of the same rate 365 day apart
- Spread loans – the charging and crediting of a different rate 365 days apart
- Direct recognition loans - the charging and crediting of a different rate 365 days apart as well as lower of the dividend credited to borrowed cash values.
- Participating loans - the charging and crediting of a different rate 365 days apart where the policy earnings are greater than the policy loans.
Answered on May 12, 2013+01+1 this answer
0flag this answerview more answers by David Racich
10968 POINTSview profileTim WilhoitOwner, Your Friend 4 Life, Brentwood TNFirst off you must have a cash value life insurance plan. It cannot be a term life insurance, because those do not accrue cash value. Be sure you have a whole life, universal life, indexed universal life or variable life insurance policy. Typically the first 5 to 7 years the premiums are used to pay for the cost of insurance. After that period is satisfied, the policy will accumulate cash value which you may borrow. Locate the illustrations page of your policy to see the cash value amounts.Answered on July 24, 2014flag this answer
Did you find these answers helpful?
Yes
No
Go!
Add Your Answer To This Question
You must be logged in to add your answer.
.JPG){kind=avatar}
