There may be times in the future when you need to leverage your current investments to access cash reserves for various reasons. While you may have a wide range of investments to tap into, it’s best to start with those that won’t have a significant impact on your future financial growth. One question that people commonly ask is if they can withdraw money from their life insurance policy. Here’s when your life insurance policy may prove to be an asset during times of financial need. If you’re interested in purchasing life insurance, start here with L M Insurance & Financial Services LLC, serving the Bronx, NY, and surrounding areas.

Does a Life Insurance Policy Allow You To Borrow Money from It?

The answer is: it depends. Term life insurance, for example, is not a form of life insurance that you can pull money from. Whole life insurance policies, on the other hand, generally allow you to borrow money from the total premiums you’ve paid so far (often tax-free), giving you the ability to access cash you’ve invested when you need it most. For example, you could use it to manage unexpected healthcare expenses. There are other ways to access money from your life insurance policy, such as borrowing against it or even surrendering it for cash value. However, these strategies can result in serious financial drawbacks, like reduced or no benefits for your beneficiaries. These are often last-resort strategies that should be undertaken only after consulting with your insurance agent, tax advisor, or attorney.

Find the Right Life Insurance Policy with L M Insurance & Financial Services LLC

L M Insurance & Financial Services LLC, serving Bronx, NY, is here to help you begin your life insurance journey. Contact us to compare quotes and find a custom life insurance policy that suits your goals!