By
eHow Personal Finance Editor
Difficulty: Moderately Easy
Things You’ll Need:
Step1
Determine your policy's approximate cash value by looking at your last annual statement from the insurance company, and plan on borrowing no more than 90 percent of that value.
Step2
Find the policy's contract number on the title page of the policy or on your annual statement.
Step3
Call the insurance company's home office during regular business hours, usually 8:30 a.m. to 4:30 p.m. in each time zone. Earlier in the day is usually a better time to call.
Step4
Choose the key prompt for "customer service" or "policy owner service."
Step5
Give the customer service representative your policy's contract number and indicate that you want to borrow against the policy.
Step6
Ask the customer service representative for the policy's exact cash value and how much of that amount you may borrow.
Step7
Ask when you can expect to receive a check in the mail, and write down that date.
Step8
Document your call by writing down the first and last name of the customer service representative and his or her direct phone number or business extension.
Comments
Wisquote said
on 3/9/2008 In general borrowing against life insurance is usually a bad idea as it can create a problem maintaining death benefit in the future and possibly trigger an "all at once" taxable event at some point, on top of loan interest. Be very wary of policy loans.
www.wisquote.com