You can also opt to
borrow against the cash value accumulation portion or simply cash it out later in life.
If you have
borrowed against the cash value accumulation while still alive, any amount that has not been re-paid, along with interest, will be deducted from the death benefits when you die.
You also have the option to
borrow against the cash value accumulation of the policy at a lower rate than you would get at a bank.
Can Borrow Against the Cash Value of a Whole Life Policy Another convenient feature of a whole life policy is that you can
borrow against the cash value accumulation feature.
Not exact matches
You can always
borrow against the
cash value of the policy, and you won't have to pay any taxes on that
accumulation unless you choose to redeem it.
• Coverage is for life, eliminating the need to renew the policy • Provides death benefits •
Cash value accumulation feature, which builds up over the life of the policy • Allows you to
borrow against the policy • Allows you to surrender the policy
Another distinct benefit offered by the
cash value accumulation portion is that you can also
borrow against it.
Whole life insurance provides a guaranteed lifetime coverage, fixed premiums and
cash value accumulation, that can be withdrawn or
borrowed against via life insurance loans.
The agent will likely tell you that the
cash value accumulation is tax deferrable and that you can also
borrow against the policy which is true.
The
cash value accumulation portion of any permanent life insurance is only available to the insured person while they are still alive, and is available to
borrow against (for which the policyholder will be charged interest) or for withdrawal.
It generally takes 12 — 15 years before you can take advantage of the the
cash value accumulation portion, but you can
borrow against it.
Both these policies have an in - built
cash value that you can access after a few years of
accumulation that you can surrender for most of its
value or
borrow against.