New question in Life Insurance FAQ

New question in Life Insurance FAQ:

If I have been paying approximately $90.00 per month for the past 12 years. How much (ball park) am I allowed to borrow against this term policy and do I have to pay it back or is there any type of penalty? How do I go about borrowing against this policy, if possible?

Most term policies do not have a cash value. You would have to contact your broker or the insurance company to see if your policy has a cash value – if it does, you can generally just write the insurance company a letter with the request. As a rule of thumb, you can borrow up to 90% of a policy’s cash value.

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