You may or may not be able to borrow from your life insurance policy.
First, it depends on what type of life insurance you own.
Term life insurance is pure life insurance protection and does not build up any cash value inside the policy, so there is no money to borrow from your term life insurance plan.
Permanent life insurance provides lifetime coverage and builds up cash value inside the policy over time.
If you have had your permanent life insurance policy for more than a few years, there may be some cash value in the policy. In order to find out how much you may be able to borrow from your life insurance policy contact your life insurance company and ask them this question.
Usually, a life insurance company will allow you to borrow top to 80% of the cash value in your policy. The insurance company considers this a loan, which you pay back at a set rate of interest. If you do not pay back the money you borrowed, the amount of your life insurance coverage may be reduced.
The insurance company will give you a loan agreement stating your options for repayment of the loan, and how non-repayment will impact your life insurance policy.
First, it depends on what type of life insurance you own.
Term life insurance is pure life insurance protection and does not build up any cash value inside the policy, so there is no money to borrow from your term life insurance plan.
Permanent life insurance provides lifetime coverage and builds up cash value inside the policy over time.
If you have had your permanent life insurance policy for more than a few years, there may be some cash value in the policy. In order to find out how much you may be able to borrow from your life insurance policy contact your life insurance company and ask them this question.
Usually, a life insurance company will allow you to borrow top to 80% of the cash value in your policy. The insurance company considers this a loan, which you pay back at a set rate of interest. If you do not pay back the money you borrowed, the amount of your life insurance coverage may be reduced.
The insurance company will give you a loan agreement stating your options for repayment of the loan, and how non-repayment will impact your life insurance policy.
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