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Answered 2008-08-06 13:55:09

No because it is not a cash value policy.

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How do you borrow money against your Life Insurance?

if its a cash value policy contact the companies customer service line.


How long after purchase of life insurance policy can you borrow from face value?

Take a look at your policy paying attention to the illustration in the guaranteed column. This will show you how much money you will have to borrow against in a given year. When there is enough you can borrow against it. But be careful!


How do you obtain money from life insurance policy?

There are 2 possible ways to obtain money from a life insurance policy: 1) If you own a cash value policy and you've built up a positive cash value, it's possible that your life insurance company will lend you money at a low interest rate using the cash value account as collateral. 2) If you are very sick and can't afford to pay your premiums any more, it's possible to sell your policy for cash, which is called a "life settlement" or borrow on it from a bank, but be prepared to show that you only have years to live.


Can you borrow funds against money owed to you that is secured by a life insurance policy on the life of the person who owes you the money?

Absolutely not, you can only make a legitimate loan through a bank


Can you borrow money from life insurance policy after 5 years of not being active?

No, I don't think so because if you been in active for 5 years you must have to pay them other wise they will give back to you that money after calculation as per their policy


Do you have to pay taxes when receive money from homeowner insurance?

Yes it is possible that you could have some taxable income when you receive a reimbursement from your homeowner insurance policy.


Can you borrow money form your term life insurance?

No. Term life insurance has no "surrender value", so is no good as collateral. The insurance that you might be able to borrow against is "whole life".


Can you borrow money from group life insurance?

No. Group life does not belong to you.


Is there a clause in a life insurance policy that pays for a home if the owner dies?

It would be possible to write an insurance policy that way if you wanted to, however, normally a life insurance policy pays a fixed amount of money (known as the death benefit) to a chosen beneficiary. If the beneficiary then wished to use that money to pay for a home, that could be done.


Can you borrow money from a universal life insurance policy?

Most Life insurane companines allow you to borrow money from your Universal Life Policy. There will be an interest rate charged, the interest rate will be reflected in your policy under "Loans". You will only be able to borrow against the cash accumulation account. The amount in the account is usually the difference between the cost of insurance, plus expenses and the amount that you have been putting into the policy, plus any earned interest. The more money you pay into the policy above the cost of insurance and expenses, the more you should have in your cash accumulation account. Remember, you determine the amount of the premiums paid into the policy, the amount has to at least meet the minimum premium set by the life ins. company, and cannot exceed the top limit placed by IRS to maintain a life policy's tax benefits.


Can a trustee in an irrevocable life insurance trust borrow money from a life insurance?

No to avoid estate tax penalty


How can you borrow money off your life insurance policy if you are still living and there is no cash value?

If you have no cash value on your policy, you will not be able to get a loan against the policy. If you are diagnosed with a terminal illness, all insurance companies have an accelerated death benefit usually included in most policies. Some states also allow selling of your policy to a new policy owner to accelerate portion of your benefit amount.


Can you bank on yourself with universal life insurance to build wealth for paying debts and retirement?

Some whole life insurance policies are structured such that you can borrow on the death benefit but you much pay it back over time with interest. The interest is yours to keep as part of the total death benefit of your life insurance plan. If you pay your premiums you will be able to borrow up to the death benefit. If you pay your premiums plus additional money, the money you "save" can be invested to grow tax-free. You can borrow this money too and must repay it to yourself with interest. The point is that when you pay premiums for a whole life policy, that money is ultimately going to be your estate's at some point when you die. You are just borrowing on it while alive. If you die prior to paying back the money you borrow, the death benefit of the policy pays off the balance of the loan.


How does an insurance company benefit from insurance?

When an insured purchases an insurance policy they pay the insurance company money for the insurance coverage. This money the insurance company collects is called insurance "premiums". The insurance company, using the law of large numbers, collects more money in premiums than it pays out in claims. The insurance also makes alot of its money by taking the money earned from premiums and then investing it. As we all know that Life insurance policy cash values are accessed through withdrawals and policy loans. However, withdrawals are taxable to the extent they exceed basis in the policy. Loans outstanding at policy lapse or surrender before the insured's death will cause immediate taxation to the extent of gain in the policy and hence benefits the company.


How do you get insurance money?

Insurance money is paid when you make a valid claim against the policy and can prove why the situation falls under the terms of the policy---whether it is Life Insurance, Car Insurance, Accident Insurance, Travel Insurance, etc. Call the Insurance Company for exact details.


What is an unmatured life insurance policy?

The life insurance policy has a maturing date that determines the time it takes for a policy to accumulate the amount of money essential for the policy. An unmatured life insurance policy is one that hasn't yet reached the end of its policy.


Can money be pulled out of a life insurance policy prior to death?

You must direct your question to the insurance company that holds the policy.


What can you do if you do not have the money for the deductible for your home owners insurance claim?

You can either borrow money or what to get the repairs done until you have your deductible.


How do you get your termination money in a lump sum for life insurance policy?

Send in your policy and ASK.


My partner died and left an insurance policy but didnt make a will i had 3 children with her am i entilted to her insurance money?

Not unless you are named on the policy.


Person who receives money from a life insurance policy?

Beneficiary


Can you out live a life insurance policy?

Yes, you can out live your Insurance Policy. When the amount of the premium paid equals the face amount of the policy (the death benefit), the policy matures and you get all your money back.


How long does it take to cancel your life insurance policy?

I have a whole life insurance policy, how long does it take to cancel it, also can I get money back from it.


How can one make life insurance loans?

You can make life insurance loans through an insurance agent or bank. You probably first get a life insurance policy. You then fill out an application and the agent will process the application and give the loan. You can borrow up to $500,000 which will be subtracted from you death benefit. You then have to repay the loan off when you are done with it. Life insurance policies are forfeited when you sell you life insurance policy through settlement. Your beneficial will receive the portion of the money you paid back.


How much money can you expect from a life insurance policy?

The amount of money paid out will be listed in the policy itself. Read the contract to find this out.


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