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does anyone know how borrowing against the gerber life insurance plan works??

i am wanting to borrow against the plan that my grandfather has for me for stuff for a house. i turn 21 in 4 months n i know it doubles then. so would be allowed to borrow up to 10,000 or is there some other amount can use.. know the plan is for 10,000 life insurance.

Public Comments

1. Oh, you don't borrow against the PAYOUT value, you borrow against the CASH value. If you're 21, and the payout value is $10,000, cash value is probably around $200. Life insurance is NOT a good savings tool, or financing tool.
2. Depending how long your grandfather has been paying this, there MAY be $200-500 in cash value. Of this, you can borrow up to 75% of the value and still have insurance. If you take it all out, the insurance will end. You would have to have a terminal illness to be able to take any money from the face value of 10k.