The cash value life insurance won't continue to grow with the loan. It is cheap access to funds. But funds borrowed wont continue to accrue interest with outstanding loans.

If some is offering that, don't believe them until they can show you a policy jacket with it in writing. Cash which hasn't been borrowed against will not be suspended from growth. And future payments into the life insurance will continue to further the cash value. But you won't be permitted the low cost loan with growing interest on top of it.

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Posted by BurlesonCountyAg

Member since Jan 2014

3024 posts

Posted on 6/6/18 at 8:45 am to meansonny

I have a whole life and UL through MassMutual. I've borrowed from both policies. I noticed when I borrowed from my WL it reduced my cash value by the amount of the loan. I don't think that was the case with the UL. Does that mean my UL continued to grow at full cash value and my WL did not?

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Posted by BogeyGolf

Minot

Member since Nov 2016

974 posts

Posted on 6/6/18 at 5:50 pm to meansonny

quote:
The cash value life insurance won't continue to grow with the loan. It is cheap access to funds. But funds borrowed wont continue to accrue interest with outstanding loans. If some is offering that, don't believe them until they can show you a policy jacket with it in writing. Cash which hasn't been borrowed against will not be suspended from growth. And future payments into the life insurance will continue to further the cash value. But you won't be permitted the low cost loan with growing interest on top of it.

The loan technically comes from the mutual insurance company, not the policy.

This post was edited on 6/6/18 at 5:55 pm

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