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Ask the Life Insurance Expert

Can I borrow money against my life insurance policy?

If you own a cash value life insurance policy, you can take out a loan against the cash value you have built up in the policy. Of course, you will have to pay back the loan with interest. If you die before you pay back the loan, the balance that you owe and any interest will be deducted from the death benefit.

If you own a term life insurance policy, you cannot take out a loan against it because term life does not build up any cash value.

Last updated: Dec. 7, 2009
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