Can I Borrow From My Life Insurance Policy? Dear Insurance Adviser,I have a life insurance policy and would like to know: Can I borrow money off it?— Shaking the Trees. Dear Shaking,There are basically two types of life insurance: term life insurance, which pays off only if you die within the policy term; and permanent, aka whole life, insurance, which has you paying considerably more per year in the early years so that your premium stays level in your older and more high- risk years. Save on your life insurance — compare quotes from reputable insurers! What you overpay in the early years is set aside and referred to as “cash value.” In the first 1. The difference between the cash value and the surrender charges is what is known as the “surrender value.” That’s usually the amount you can borrow from the policy — also known as the “loan value.”You asked the question, “Can I borrow against my life insurance policy?” The answer is “yes,” though only if it’s a whole life policy with cash values and only up to the amount of the surrender or loan value. One caution: Whatever amount you borrow from the life insurance policy reduces the amount your beneficiaries will receive when you die. ![]() So try to get on a repayment plan to put the money back as soon as you can. At a minimum, you’ll have to pay interest on the loan annually. Happy borrowing! Ask the adviser. ![]() To ask a question of the Insurance Adviser, go to the”Ask the Experts” page and select “Insurance” from the drop- down box. Read more Insurance Adviser columns. Zurich Insurance plc, a public limited company incorporated in Ireland. Registration No. 13460.Registered Office: Zurich House, Ballsbridge Park, Dublin 4, Ireland. ![]() Zurich International Life fund centres and investment strategies. Adhere to this Protocol. Protocol Name: ISDA 2013 EMIR Port Rec, Dispute Res and Disclosure Protocol; Last Updated: June 30, 2017; Number of Parties: 14478. Magazine Our online magazine features newsworthy glimpses into our organization and stories that are at the heart of the Zurich brand. Calendar and events. The foreign relations of Taiwan, constitutionally and officially the Republic of China (ROC), are the relations between the Republic of China and other countries. ![]() Bankrate’s content, including the guidance of its advice- and- expert columns and this website, is intended only to assist you with financial decisions. The content is broad in scope and does not consider your personal financial situation. Bankrate recommends that you seek the advice of advisers who are fully aware of your individual circumstances before making any final decisions or implementing any financial strategy. Please remember that your use of this website is governed by Bankrate’s Terms of Use. More From Bankrate. ![]() ![]() ![]() ![]() ![]() Risk management and commercial insurance from Zurich. Enterprise risk management and insurance solutions to help protect your business. ![]()
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