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It often takes five to 10 years to accumulate enough cash value to borrow against your life insurance policy. The exact length of time depends on the structure of your policy, including your premiums and rate of return.
Our Customer Services team is more than happy to assist you with your questions. Please feel free to email us at ClientServices@bostonmutual.com. You can also call our Client Services department at (877) 624-2249 between 8:00 a.m. and 5:00 p.m. EST to speak directly with a representative.
The policys cash value acts as collateral for the policy loan. If you never pay back the policy loan during your lifetime, the amount is deducted from the death benefit when you pass awaymeaning that your beneficiaries will receive less and essentially repay the loan.
Life insurance can be used to buy a house. You can use your policy as collateral for a mortgage loan. If your policy has cash value, you could also take the money out for your home purchase.
Your policy has a loan provision that allows you to borrow a certain percentage of your policys available cash value. This advance need not be repaid, although we suggest you pay the nominal annual interest charge.
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You can typically take out loans against permanent life insurance policies, but not term life insurance policies. Life insurance loans use cash value accounts as collateral. Term life insurance policies do not come with a cash value account, so policyholders cant borrow money from their insurer against these policies.

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