+91 votes
I am considering taking out a loan from my life insurance policy. Is this possible?
by (420 points)

1 Answer

+76 votes
Best answer
Yes, it is possible to take a loan from your life insurance policy. Many permanent life insurance policies, such as whole life and universal life insurance, allow policyholders to borrow against the cash value of the policy. This can be a useful source of funds for various purposes, such as paying off debt, investing, or funding large expenses. However, it is important to note that borrowing from your life insurance policy can have tax implications and may reduce the death benefit paid to your beneficiaries. It is essential to consult with a financial advisor to determine if this option is suitable for your specific situation.
by (440 points)
selected by