Can I Borrow Money From My Life Insurance?

  1. 11783 POINTS
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    Larry GilmorePRO
    Agent Owner, Gilmore Insurance Services, Marysville, Washington State
    Can you borrow money from your life insruance policy?    Yes, you can borrow from your policy, usually with an email or a phone call funds can be wire transfered into your checking account within a few days. You know what is really nice about this option? You don have to ask permission or justify your need to somebody in a cubicle to get access to your funds.
    Answered on May 28, 2013
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    David RacichPRO
    Fountain Hills, Arizona
    If you have cash value life insurance and you have cash values in your account, then yes you can borrow money from your policy. Keep in mind that there are several policy loan provisions that may assess a interest charge: zero net cost loans, wash loans, spread loans, direct recognition loans and participating loans. The loan cost could be zero up to 3.50%. 

    Answered on May 28, 2013
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  3. 276 POINTS
    Tim Hamilton
    Owner and Principal Agent, Hamilton Insurance Group, 401 Lewis Hargett Circle, Suite 130, Lexington, KY 40503
    Assuming you have a permanent life insurance policy that builds cash value(like Whole or Universal life) it can be an excellent source of funds. However, you should proceed with caution because you do not want to withdraw too much. Contact your agent or your insurance company's customer service department to learn what they recommend. You might also ask them if you would be better off just withdrawing the needed cash. There are different consequences when you withdraw funds in lieu of borrowing.
    Answered on May 16, 2014
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    Peggy MacePRO
    Most of the U.S.
    If you have Term life insurance, there will not be any cash value to borrow from. No lapse Universal life insurance may have minimal to no cash value, making it impossible to borrow from that type of policy, as well. Whole life, or Universal life which has been funded heavily, will have enough cash value to borrow from after several years, or possibly earlier.
    Answered on December 17, 2014
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