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How is the loan value of a whole life insurance policy determined?

The policy may be paid and it is payable on death in the amount of $50,000. It isn't my policy - I don't have access to the terms. I am providing a service (legally) for someone. I don't want a loan - I just need to know the amount so I can document the loan/cash value of the asset. So I was looking for a percentage or formula to calculate it.

Public Comments

1. The terms are included in the policy.
2. It's often a percentage of the total cash surrender value of the policy (not the death benefit), such as 90%. For example, a $50,000 policy might have a cash value of $5,000. So the maximum loan available might be $4,500. But you'll have to know the terms of the policy to be sure.
3. The death benefit is not the cash value. You can only borrow against the cash value which probly is very little unless they have had the policy for a long, long, long, long, long time. That is why whole life and universal life policies are big rip offs. If you want to invest you should do it in a 401K or IRA where the money grows and its your money. You do not have to borrow against it. You would have to call the insurance company and ask them what cash value is in the policy. They are the only one that knows. Don't be surprised if its not that much less they have had the policy more than 30 years or more.
4. Well, about 10% of what you pay in, in premium, goes to "cash value". So if the policy is costing about $300 a year, about $30 a year goes into the cash value. So it depends on how much the premium is, and how long the policy has been in force - but I'd be VERY surprised if the loan value is more than $2,500 - and only that, if the policy is paid in full, and has been in force 50 years or so. As it's not your policy, though, it's a moot point - you can't DO anything about it, and it's not your business anyway.
5. It's based on the cash surrender value. Usually up to a certain percentage of it. Doesn't really have anything to do with the face amount.
6. How long are you speted to live, under your actual health conditions. I think!