You can borrow money usually against any permanent life insurance policy that builds cash value, which is one of their advantages over Term Life insurance. Of course, any such loan needs to be paid back with interest. Such life insurance loans are often used to help with home, college, or unexpected medical expenses. If the insured passes away before the loan is paid back, the balance owed plus any applicable interest is deducted from the death benefit amount. A loan allows a life insurance policyholder to gain access to the cash value of their policy, while still maintaining their insurance coverage. Loan interest rates vary by state and by insurance company, and particular details are generally explained in your specific life insurance policy. The process is simple, and usually entails merely contacting your agent or broker and requesting the loan, depending on your particular life insurance company’s policy, such request may need to be made in writing.
Disclaimer - The above description/explanation is intended as a guideline only,and is not to be interpreted as a recommendation to buy or sell any insurance products, or to provide legal or financial advice of any kind. Also, Bergen Insurance. Does not warrant or assume any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed. No reproduction or republication permitted.