Borrow From Your Life Insurance Policy

Category : Insurance

If your insurance policy has a cash value, you may be able to borrow against it for quick cash at very low interest. You must be the policy's "owner" to borrow.

Determine your policy's approximate cash value by looking at your last annual statement from the insurance company, and plan on borrowing no more than 90 percent of that value.

Find the policy's contract number on the title page of the policy or on your annual statement.

Call the insurance company's home office during regular business hours, usually 8:30 a. m. to 4:30 p. m. in each time zone. Earlier in the day is usually a better time to call.

Choose the key prompt for "customer service" or "policy owner service. "

Give the customer service representative your policy's contract number and indicate that you want to borrow against the policy.

Ask the customer service representative for the policy's exact cash value and how much of that amount you may borrow.

Ask when you can expect to receive a check in the mail, and write down that date.

Document your call by writing down the first and last name of the customer service representative and his or her direct phone number or business extension.