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Does Term Life Allow You To Withdraw Cash Against The Policy's Value?

Term Life Insurance & Whole Life Insurance Discussion

Does Term Life Allow You To Withdraw Cash Against The Policy's Value?

Postby maurizio » Sun Oct 08, 2017 12:39 pm

Yes, there are some life insurance policies that build a cash value and you can borrow against that cash value. However, Term Life is not one of those policies.
maurizio
 
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Does Term Life Allow You To Withdraw Cash Against The Policy's Value?

Postby Herald » Wed Oct 11, 2017 11:18 am

NO.
There is no "cash value" with term life.
You can get cash value with whole life, universal life, variable univeral life.
That's why they COST you more.


Cash value that you borrow, is a PORTION of what you pay in every year.
If you pay in $1,000 for the premium, maybe $100 of that is going to 'cash value'.
So you can borrow the $100 back, but if you pay it back, you pay INTEREST on it to the insurance company, and if you don't pay it back, that $100 plus the interest is subtracted from the death benefit.
Herald
 
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