If you have a whole life insurance policy your plan may build cash value inside the policy over time.
The amount of cash value inside your whole life insurance policy will help to determine how much you may take out as a loan.
Usually, whole life insurance plans may allow you to take out up to 75-80% of the cash value as a loan.
That means, if 80% is the limit, and you have $5,000 of cash value in your whole life insurance policy, you may take out $4,000 as a loan from your policy.
The insurance company charged you an interest rate on the loan and the entire amount you pay back usually goes into your cash value.
The amount of cash value inside your whole life insurance policy will help to determine how much you may take out as a loan.
Usually, whole life insurance plans may allow you to take out up to 75-80% of the cash value as a loan.
That means, if 80% is the limit, and you have $5,000 of cash value in your whole life insurance policy, you may take out $4,000 as a loan from your policy.
The insurance company charged you an interest rate on the loan and the entire amount you pay back usually goes into your cash value.
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