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Borrowing agianst cash value of whole life insurance policy.?

My whole life insurance statement reflects that my cash value is $49K. Can I borrow that amount or just a portion? Do any previous loans need to be subtracted from the cash value reflected?

Public Comments

1. Yes. Any previous loans have to be subtracted from the $49K. You can borrow any portion of that that is available. Call and ask the agent or insurance company. They will tell you how much if any, is available.
2. You can usually borrow up to 75% of that. Any previous loans should already have been subtracted from that amount - if you have one, then likely that figure hasn't been updated. But you realize, that it's the worst way to borrow money? You pay the interest to the insurance company, and it's GUARANTEED by the death payout - which will be reduced dollar for dollar, by the loan balance and INTEREST.
3. You can borrow up to a certain percentage of the cash value up to as high as 90% with some companies. If your cash value reflects 49k that should be after loans subtracted. Also make sure you are aware that you can take out your basis first without incurring any loans. So you can take out everything that you have contributed to the policy without a loan at all. Speak to your agent they should be able to help you with this.
4. Depending on the policy you can borrow. If there are outstanding loans- it also may effect. There also may be surrender charges, I would call your insurance Company and ask to speak to someone about the possibility of a loan. Also Keep in mind that if the insurance is over 5 years old you may be able to purchase additional insurance, at a better rate. Please email me for options. joseph@carylevinson.com