If an emergency arises and you need money fast, borrowing against or cashing in your whole life insurance may be a good option. If you live in or near Albany, NY, the agents at NY Twin Bridges Insurance Agency can answer your questions. They can explain how borrowing against your whole life policy works.
Whole Life Insurance
The premiums paid into a whole life policy accrue interest over time. As long as the premiums are paid on time, you may be able to borrow against your policy if you have built up enough equity. As the cash value of your policy continues to grow, so does the equity. Once the total equity reaches a certain percentage, you can borrow some or all of the proceeds. If the loan has matured, you may have the option to cash it out and close the policy
Depending on the type of policy you have and the amount you withdraw, some of the money you borrow may be tax-free. If the money is considered a loan against the policy, there is intent that you will pay it back and that it wasn’t simply withdrawn as income.
The agents at NY Twin Bridges Insurance Agency are always on hand to answer your questions concerning life insurance and its many advantages. If you have questions, schedule an appointment with one of their reputable agents. If you don’t already have life insurance, they provide you with the information you need to make an informed choice. Whenever you’re ready, call their office and ask them what you need to get your life insurance policy started.