All Life Insurance Tips

when can you get a loan on your globe whole life insurance policy? ive had it since i was born im 22 now.?

Public Comments

1. Every life insurance policy is different and has different requirements. How about you read your policy ? And of course, unless you have been diagnosed with an incurable disease, at your age, you should never consider taking a loan against your life insurance policy. That would be as bad as a credit card company giving you $20,000 in credit when you only make 10k a year. It is all determined by the amount of premiums that have been paid. Also, some insurance companies might not consider the term before you were 18 years old, since you are not legally able to be bound by a contract.
2. You can only borrow up to 80% of the cash value. The problem is, the cash value is so small on those policies - it might be $200 or so, after 22 years. Maybe not even that. The loan fees will exceed the cash value.
3. There's probably not much there to borrow against. You may want to rethink the whole plan. Kid policies aren't exactly competitive.
4. You can get a loan as soon as you have cash value. But depending on the policy you may have very little cash value. If the policy has little cash value you might think about replacing it with a term policy with a higher death benefit. But be careful. If you have health issues then do not replace one policy with another. Also, do not replace if there is a lot of cash in the policy due to a possible taxable gain. But these are things you need to ask your insurance agent or company and get their advice on. And, time to rethink about the plan you have to see if any action should be taken.