Policy Loans & Withdrawals
Policy Loans and Withdrawals
How to put your cash value to work for your goals.
6 min read
Start with a question
How can you use the value you’ve built in your policy?
In plain language
Permanent policies let you access your cash value through policy loans or partial withdrawals. A policy loan uses your cash value as collateral and accrues interest; any balance you leave is subtracted from the death benefit. With a repayment plan, you keep your protection strong.
Withdrawals reduce your cash value and death benefit by the amount you take. Your licensed professional helps you choose the best option for each goal. For tax questions, consult a tax professional about your situation.
- 1
You request a loan against your cash value
- 2
You use the funds for your goal
- 3
Interest accrues on the balance
- 4
You repay on your schedule and keep your protection strong
A practical example
Example
Kevin borrows from his policy to cover an unexpected expense instead of using a high-interest credit card. He sets a repayment plan and reviews the balance every year.
Keys to get the most from it
- Set a repayment plan for every loan.
- Review your loan balance and interest each year.
- Check your remaining death benefit before requesting more funds.
Common questions
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