The only type of life insurance that you can borrow money from is permanent life insurance policies.
You cannot borrow money from a term life insurance policy because it has no cash value inside the policy, it is "pure protection", not an investment.
There are many types of permanent life insurance policies, and especially with Universal Life, some policies will have very little cash value.
In addition, most permanent life insurance plans will not build up any cash value the first few years you are insured.
If you are purchasing a Universal Life policy for the purpose of borrowing from it, you will do best with an Indexed Universal Life Insurance or Variable Universal Life Insurance plan.
You cannot borrow money from a term life insurance policy because it has no cash value inside the policy, it is "pure protection", not an investment.
There are many types of permanent life insurance policies, and especially with Universal Life, some policies will have very little cash value.
In addition, most permanent life insurance plans will not build up any cash value the first few years you are insured.
If you are purchasing a Universal Life policy for the purpose of borrowing from it, you will do best with an Indexed Universal Life Insurance or Variable Universal Life Insurance plan.
RSS Feed
