by drdavis » Sun Dec 05, 2010 11:40 am
I have a policy farmers flexible uiversal life plan. I received my annual statement and I noticed there is a section about loans against the policy. My question is can I borrow money against the policy and what are the criteria?
Posted: Sun Dec 05, 2010 10:03 pm Post Subject:
If you have accumulated the necessary amount of cash value, and satisfy the other conditions required to obtain a loan, then the answer is yes.
You'll need to read the loan provision in your contract to know for sure. Some policies state things like, "You may borrow any amount from your policy's loan value. The minimum loan we will make is $1000. We will not make any policy loan if the remaining cash value is less than $1000." Language such as this tells you that you may borrow at least $1000, but only if your current cash value is at least $2000.
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