Updated: Apr 14
In this article, I will talk about how can I borrow money from my insurance
There is only one type of insurance you can use to borrow money and that is whole life insurance with cash value, some people are calling it PAR Insurance.
How can I borrow money from my insurance?
There are 2 main ways you can borrow money from your insurance:
Directly from the insurance company.
In this case, the rate is a bit higher, but you will pay simple interest and if you plan to pay back the loan in 1 year or less, the interest you pay might be in line with a bank loan.
The main advantage with this type of loan is the payment flexibility as you can set the payback rules yourself and you can take vacation pays.
From a bank. You can a loan for up to 90% of the cash value of the life insurance
Most of the banks can offer this service and you might want to shop around to see which one has the best loan conditions or you can always ask me for help.
In case you pass away before paying the loan back, the bank will be the first in line to get paid and only the difference will be paid to the family.
If you are interested to find out more,
contact me directly at