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How much can you borrow from your whole life insurance?

I know it doesnt have any cash value until about 3-5 years and that you cant borrow the face value of the policy. If i took out a 50,000 policy on my daughter , in about 5 yrs what could I borrow from it if the premium is 30/month? What % of 50,000 could I take out? i dont want to hear anything about kids dont need life insurance. I am taking one out on myself as well anyways. I need exact figures not guesses.

Public Comments

1. Exact figures? You need to talk to the person you signed the policy with then. No one here knows the terms you agreed to. It's always better to ask questions like this to the correct person who can answer them.
2. whole life policy---60 months from now (5 years) you will have paid in $1800 (60 x $30=$1800)--that's the value of your whole life policy--whatever you have paid into it. whole life is basically just a savings account--just put your money in a savings account, it has a better rate of return. if you are buying life insurance to make sure your family is taken care of in case you die--then you need to buy term life insurance, not whole life.
3. Whole life insuance is waste of money. It is the worst savings vehicle a a person can own. Stats are out there that subprime people keep getting these Don't be navie, get rid of that policy and start a savings account . If you need life insurance, get term life insurance. Be smart with your money. Don't get brainwashed by junk mail pushers that tell you this is a good thing to do for your future Start a savings account instead - you will come out ahead. I'm a cost analyst - I have done the numbers. So have counteless of articles
4. The cash value would be the accumulated value of your deposit plus interest. Maybe $2000 after 5 years. Life insurance IS a waste of money for kids. Life insurance is to protect the income requirements of your dependents should you die or become disabled, not the other way around. Why would you need $50,000 in case your children die?
5. You can usually borrow up to 80% of the cash value in excess of $500. You can't borrow ANY of the face value. The CASH value, is a portion of what you pay in. If you're paying in $30 a month, after 5 years you've paid in $1800 total, cash value is probably about $100. You'll need to pay in at least 25 years, to have enough cash value to borrow $500. Life insurance is a death planning tool - not a very cost effective way to save money, or to have money available to borrow. It would be kinda like buying stock that's guaranteed to lose 90% of the value over the next ten years. Contrary to the answers above, not every dollar you pay in goes to 'cash value'. And it's not a savings account, and what you pay in, doesn't earn interest (although sometimes the cash value part earns interest, but not very much). Most of the first year, like 95%, goes to commission for the agent who sold it to you. If you had to guess, about 10% of what you pay in goes to cash value. Now, with YOUR policy, it will build cash value faster, because it's going to COST a heck of a lot more - you'll be paying in $300 to $600 a month, or more, depending on your age, health, and how much "coverage" you buy. So YOU could very well have $5,000 of cash value well before 10 years have passed. But if you "do the math", you'll find out that you can't borrow more than you pay in, until you've held that policy for decades. It's just about the most expensive way to borrow money.
6. If you want exact figures then look at the illustration that the insurance company provided. Ballpark though, it's going to be about zero. It's not a percentage of the $50,000. It's a percentage (usually around 90%) of the cash value. And, $360/year for 5 years is going to probably not even more than a couple hundred dollars at most. You're better off spending $30-$60/year and buying a child rider on your own policy to cover her and putting the other $300/year into your bank account
7. It is not a fixed percentage. It is not the same for everyone. No one here can give you an exact answer, because it depends on the age of your daughter and several other factors. If you need an exact figure, then you need to ask the insurance company or your insurance agent. Guesses are all that Yahoo! Answers can provide.
8. Read the policy. There is a section called " cash or surrender values/." Therein lies the answer.