If the whole life policy has a cash value you can borrow from the insurance company using your policy as collateral. the amount you can borrow can be as high as 90%. Check with your life insurance broker to be sure.
In Canada, if you borrow in excess of the adjusted cost base of the policy, it will trigger a taxable event. If / when you repay the loan you receive an adjustment you can use when you file your taxes. If you borrow from a bank using the policy as collateral, it does not trigger a taxable event.
Check with you life insurance broker, to be advised of the consequents of borrowing.
If you do borrow reminder to at least pay the interest on the loan to avoid compound and putting the policy ar risk of lapsing.
If you have further questions, or fell that I could be of assistance, please do not hesitate to contact me.
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In Canada, if you borrow in excess of the adjusted cost base of the policy, it will trigger a taxable event. If / when you repay the loan you receive an adjustment you can use when you file your taxes. If you borrow from a bank using the policy as collateral, it does not trigger a taxable event.
Check with you life insurance broker, to be advised of the consequents of borrowing.
If you do borrow reminder to at least pay the interest on the loan to avoid compound and putting the policy ar risk of lapsing.
If you have further questions, or fell that I could be of assistance, please do not hesitate to contact me.