When Can You Borrow From A Whole Life Insurance Policy?
- 37376 POINTSview profileDavid G. Pipes, CLU®, RICP®Business Development Officer, T.D. McNeil Insurance Services, Fresno, CaliforniaYou can borrow from your whole life policy as long as it has cash value. This is often called “surrender value.” The amount is listed in your policy. If you have taken previous loans, you might need to contact the company or the agent to determine the amount that you can borrow. There is no waiting period or any other requirement except your desire to borrow the funds. Contact the company for specific instructions.Answered on September 4, 2014flag this answer
- 14231 POINTSview profileTom SheehanAgency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482Talk to your Insurance Professional about the specific terms and conditions of your policy, of course. However, generally speaking, once a "Whole Life" or other type of permanent Life Insurance policy has insice cash value accumulated, you may be able to access that cash. Be careful, though, because some policies may offer a loan provision whereas others may require a ful or partial surrended of the policy. In the later case, you would receive the cash but risk loosing the coverage you purchased. Be sure to ask your Insurance Professional about any possible tax ramifications that may be triggered as well. Finally, understand that if it is a loan, it is expected to be paid back. There would likely be a small interest rate involved in addition to the principal borrowed. Should you die while the loan is outstanding, it may very well be that the total amount owed (principal and accrued interest) may be deducted from the death benefit you intended for your beneficiary.Answered on October 15, 2015flag this answer
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