Insurance agents and companies may promote loans as an easy way to receive tax-free money from your life insurance policy. Policy loans are available on most permanent cash value life insurance policies. Life insurance policy loans are available on life insurance policies where there is sufficient cash value to borrow against. How to Monitor a Life Insurance Policy LoanThe insurance company will not require you to pay back the loan balance. As you can see, this rapidly increases the policy loan balanceHere’s how it works:On a permanent cash value life insurance policy, the cash value increases every year.

Source: Forbes September 29, 2020 10:52 UTC