How much money can I borrow from my life insurance policy?

The amount of money that can be borrowed from a life insurance policy will depend on the specific policy and its terms. Generally, a policy owner can borrow up to the policy's cash surrender value. The cash surrender value is the amount of money the policyholder would receive if they surrendered the policy to the insurance company. The amount of cash surrender value depends on various factors, such as the length of time the policy has been in force, the premium paid, and the interest earned on the policy's cash value. It's important to note that borrowing from a life insurance policy reduces the death benefit payable to beneficiaries upon the policyholder's death. The borrowed amount, plus any interest, must be repaid before the policy's death benefit is paid out. If the policyholder dies before repaying the loan, the outstanding amount will be deducted from the death benefit. Additionally, borrowing from a life insurance policy may have tax implications. Any borrowed funds are typically not taxable, but if the policy lapses or is surrendered, any outstanding loan balance may be subject to taxes. It's recommended to consult with a financial advisor or tax professional before borrowing from a life insurance policy.