Are you in need of cash? Well, that’s kind of a loaded question. Everyone always would like to have some extra cash, right?
So if you find yourself in need of cash, do you go to your Life Insurance policy to withdraw cash? Do you take out a loan in your policy?
Be careful! If you take cash out of your Life Insurance policy, it can have a tremendous impact depending on your policy. Below are some of the things to consider when contemplating taking cash out of a Permanent Life Insurance policy.
Removing Cash Value can adversely effect the guarantees in many Permanent Life Insurance policies.
Permanent Life Policies
If you withdraw cash from a permanent life insurance policy, by request the life insurance company will run an in-force illustration that will project the longevity of your policy. This important tool would reflect any negative impact on your policy as a result of the withdrawl.
Policies and stipulations vary from one life insurance company to another so it is important to review the specifics of your policy. If you own a Guaranteed Universal Life policy, you should NOT take out any cash value without first talking with your life insurance agent.
In fact, you would be well advised to have a discussion with the home office, but most importantly–communicate with your life insurance agent! One must understand the ramifications of removing any cash value from any permanent life insurance policy.
If you need assistance, Reynold Jones Insurance Group works with the very best life insurance agents and financial advisors in Hurst, Euless and Bedford–as well as across the Dallas/Fort Worth Metroplex.