No, you cannot borrow from a standard term life policy. Standard term life policies do not accrue cash value, thus there is nothing to borrow against. If you are looking for a policy that will allow loans, you need to look at a form of permanent life insurance. Specifically, you should look at whole life or universal life. Get with an agent in your area to go over the options. Be sure to mention your objectives, such as the ability to borrow from the cash value. This way your agent can be sure to match you with the right policy for you.
Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
Unfortunately no, you cannot get a loan on a term insurance policy. To be able to secure a loan on a life insurance policy, the policy has to have cash value to borrow against and only permanent insurance policies (universal life and whole life) build cash value.
I hope the information is helpful - please feel free to contact me for assistance with your coverage and if you have any other questions. Thanks very much.
Unfortunately, there is no cash value associated with a term life insurance policy and therefore there are no funds to borrow. Term life plans are meant to be temporary to cover a specific need for a specific time period. The only types of life insurance polices that accrue cash that can be loaned are the whole life, universal life, indexed universal life and variable universal life policies.
You cannot get a loan ON a term life insurance policy, because term life does not have any cash value to borrow from. But you can get a loan WITH a term life insurance as collateral, with some lenders. Some lenders don't care that your policy doesn't have cash value, they just want to know that they would get paid if you passed away before your debt was settled.
.JPG){kind=avatar}
I hope the information is helpful - please feel free to contact me for assistance with your coverage and if you have any other questions. Thanks very much.