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What's the maximum loan amount that a person can write against a whole life insurance policy?

I don't understand it very well yet...thanks in advance...

Public Comments

1. That can vary depending upon the insurance company. The way it works is there is a cash value that the policy is worth. This means if you give up the policy you get that cash minus any surrender charges that might be imposed. The insurance company will allow you to borrow a percentage against that cash value, not the face value of the policy as many people think. The percentage is up to the company but can usually be 50% - 75%. The money borrowed is paid back with interest but you can choose not to pay it back. If you don't the face value will be reduced at death.
2. Hey there... I researched this one for you... better check on it, Im pretty sure that you'll discover something useful...
3. The most you can get, is your "cash value". About 10% of what you pay into it each year, goes into "cash value". After 5 years, of $2,000 a year, you'd have $1,000 of cash value, approximately. Life insurance is NOT a wealth building tool or a savings tool.