Borrowing Against Whole Life Insurance at a Bank
We get many questions on using life insurance policies with cash value as collateral for bank loans. First, you can ONLY borrow against a policy with cash value, such as whole life insurance. You cannot use this strategy at all with a term insurance policy.
Often, local (as opposed to large/national) banks and credit unions will lend against the cash value of life insurance. So you may want to start with your local banker.
If you’d like to know how to use life insurance while alive to get cash quick, read our recent article.
Additionally, the banks listed below have been referred to us as providing this service nationally. Please contact them directly for more information.
Loan-to-value limits are usually 80 or 90%. (You could borrow up to $80k to $90k with $100k of cash value as collateral.) Bank rates are often lower than the interest rates for policy loans, with current rates as low as prime.
And of course, you can also contact us directly to set an appointment to speak with Kim or to talk with Theresa, our multi-generational life insurance specialist.
If we can assist you with a new policy, please reach out to us at email@example.com.