Do you have a life insurance policy? Do you need some money for something in life? Maybe you need a new car or you need to get caught up on some bills? Whatever your situation is, you may be able to borrow money from your life insurance. The amount you borrow may depend on how your policy was set up, but most life insurance policies are set up so that people can take money out at certain times. There may be a stipulation where you can only do this once or within certain time periods.
Some life insurance policies were set up so that people can draw money from them at any time during their life. Some people take a little and some take what is there and start a new policy. This is not a get cash quick thing. There is a waiting period before money is sent once it is requested. It will depend on the policy and company on how much, if any, you can borrow.
- If you already know that you can borrow from your life insurance policy and do not need to ask the company about this, contact your insurance agency and make your request so that they can get things started for you.
- If you are not sure about your policy and your options, call your insurance agency and they will answer all your questions.
- Once it has been established that you can borrow from your life insurance policy, the insurance agency will then ask you a few questions and send you forms to fill out and sign. You return the forms to them and they will contact you if any more information is required. Some companies will allow you to fax the forms back to them.
- It can take anywhere from 2-4 weeks for them to cut a check and send it. Your agency should be able to tell you about this process and answer any other questions you may have.
Life insurance that you can borrow from is kind of like having a savings account. Some people do not realize that they can borrow money from their life insurance. Imagine the surprise when they find out after it has been several years of paying those premiums. Of course, it does depend on which type of policy was made when you first applied for life insurance. Remember, if you draw out all of your money, start a new policy.