Awesome 10 Borrowing From Universal Life Insurance Policy
Wallpaper. Therefore, borrowing from your life insurance policy is an excellent alternative if you aren't sure how long you'll need the loan. According to the latest data from the federal reserve you could owe tax on some of the money you haven't paid back if your policy lapses before the loan is fully repaid.
Universal life insurance is a form of permanent life insurance that may provide life insurance protection along with the benefit of flexible premiums, and cash value if you pay your premiums, you're guaranteed to have coverage for life, (assuming you don't withdraw/borrow from the policy.)
Therefore, borrowing from your life insurance policy is an excellent alternative if you aren't sure how long you'll need the loan. One example is an accelerated death benefit rider. Which means the cash value itself is still an asset of the policyowner, and remains invested with the potential to grow. These policies provide different levels of coverage to meet different customers' needs.