Can You Borrow Against Life Insurance?

Nobody really wants to discuss life insurance, but it can be extremely beneficial for a number of reasons. If you are planning to protect your family or planning for a secure retirement, whole life insurance can offer you the ability to borrow from the value of the policy.

Borrowing From Your Policy 

Term life insurance doesn’t allow you to borrow against your policy, but whole life insurance does. Policies vary from provider to provider, but in most cases, you can begin to borrow against the value of the policy after you pay your premiums for a certain amount of time, usually a few years. Before you choose the policy, you should consult a licensed life insurance agent to find out whether whole life is right for your needs. If you choose the whole life policy, find out how long you must pay your premiums before you can borrow against the value. This is a great option for unexpected emergencies that can arise through life. 

Working WIth Knowledgeable Life Agents

If you are wanting to purchase a life insurance policy, you may be able to also borrow against it in the future if the need arises. Make sure the policy is what is right for your personal need and work with an agent who can give you the details about how the policy will allow you to borrow money and then pay it back over the course of time once you have paid into the policy for a certain number of years. If you live in the Burlington NC area, consider speaking with a representative from Don Allred Insurance before making a decision. 

Selecting the right life insurance can be a challenge if you don’t have a great agent working with you. If you want to find the right coverage option and have a potential safety net in the process, consult with Don Allred Insurance proudly serving the resident around the Burlington, NC area. Call or stop by today for details.