1. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    In order to provide a level death benefit at a level premium, a whole life insurance policy develops cash value.  These cash values are guaranteed in the whole life policy and are called “non-forfeiture” provisions.  You may borrow from that cash value.  There will be interest charged but the cash value is usually increasing at a rate that is near the interest being charged.  
    Answered on August 1, 2014
  2. 10968 POINTS
    Tim Wilhoit
    Owner, Your Friend 4 Life, Brentwood TN
    Typically yes you can borrow from a whole life policy if the conditions are right. First locate your policy and find the illustrations page. This is a chart of cash values at different years in the policy. Depending on the time the policy has been in force, this will give you an idea of how much you may borrow and the interest rate you are charged until repayment.
    Answered on August 1, 2014
  3. 21750 POINTS
    Jim Winkler
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That is a great question! Being able to borrow from your policy is one of the best reasons to have a whole life policy. It is a great way to get money no questions asked when you need it...That said, there are a couple of things that you need to know. First is that if your policy is under 5 years old, there probably isn't much to borrow. It usually takes between 2-3 years for your policy's expenses to be paid, and for the cash t begin piling up. The second is that whatever you borrow is subtracted from the benefit at the end, if you don't pay it back. You also need to be careful that the amount of the loan plus interest doesn't grow big enough to capsize your policy and cause it to cancel. Pay back what you can, as often as you can, to keep that from happening, ok? Thanks for asking!
    Answered on August 4, 2014
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