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Can I Borrow From My Life Insurance Policy?
Home » Insurance » Insurance Questions » Can I Borrow From My Life Insurance Policy?Whether a policy holder is able to borrow money from their life insurance policy depends first of all on what type of policy they own. If they own a term life insurance policy then the answer is no, those types of policies are unable to borrow against because they do not accumulate any cash values. Whole life insurance policies however do allow the policyholder the option of borrowing against the policy as long as the premiums are up to date. Borrowing from life insurance policies is seen as a loan and is subject to the current life insurance policy loan interest rates. When borrowing against a life insurance policy there are several factors that determine the amount in which you can borrow such as the kind of whole life insurance policy you have, how long you have had it, as well as its size.
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