Can You Take Out A Loan On A Term Life Insurance Policy?
3998 POINTSview profileMatt BenoreFounder, DenverWest Insurance Professionals, Inc.,NO, you cannot take a loan out on a Term Life Insurance Policy, unless, you have a Return of Premium (ROP) Term Life Insurance Policy. Simply put, Return of Premium means you will get 100% of the money you paid in at the end of the term. During the term period, a few companies will let you "borrow" the money that is building.Answered on August 19, 2014flag this answer
37376 POINTSview profileDavid G. Pipes, CLU®, RICP®Business Development Officer, T.D. McNeil Insurance Services, Fresno, CaliforniaIt is unlikely that you could take a loan against your term life insurance policy, because it rarely has any cash value. In the rare cases where it might have a small amount of cash value, gaining access to that cash value is governed by provisions in the policy. If you want life insurance that allows you to take a loan, you want a permanent life policy. Contact your life insurance agent for details.Answered on August 19, 2014flag this answer
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