How a Life Insurance Loan Works

It Won't Affect Your Credit

Taking out a life insurance loan doesn’t impact your credit score, offering a discreet borrowing option

There’s No Approval Process

You can access funds without an approval process, making it quick and convenient

It Remains Tax-Free as Long as the Policy Stays Active

The loan proceeds are tax-free if your policy remains active, providing you with a financial cushion

The Interest Rates Are Typically Much Higher:

Expect higher interest rates compared to other loans, which can affect your repayment strategy

Loan reduces your cash value and death benefits

Borrowing decreases your policy’s cash value and death benefits, impacting your future financial planning