1. 15645 POINTS
    Edward HarrisPRO
    Owner, Best Health And Car Insurance Rates - Instant Online Quotes, US
    You can often borrow money (in the form of a loan) from a life insurance policy. Typically, it is a whole life policy or another form of permanent coverage.

    Many years ago, the loan interest rate was 5% or lower. The rates increased but have been reducing in recent years.

    Tax ramifications will also have to be considered anytime you withdraw funds from your contract.

    Your best resource for determining if it is wise to secure a loan from your policy is an experienced local full-time broker/agent. Typically, advertisers and marketers are not your best choice.
    Answered on June 14, 2013
  2. 37376 POINTS
    David G. Pipes, CLU®, RICP®PRO
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    In order for permanent insurance policies to provide a level death benefit for a level premium money must be accumulated in the policy to be ready to pay the skyrocketing costs when people reach their average mortality. At that point half of the population is dying each year. Those funds are available to the policyholder as collateral for a loan. Those values are guaranteed in the contract.
    Answered on November 14, 2014
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