I have a permanent (whole life) insurance policy. I want to take out a loan on my cash value, so I called the company to get information. The company representative told me that they would give me the information after I process a loan; it would be sent in the mail. The company wouldn't tell me the interest rate over the phone. Don't they legally have to tell me the rate before I decide whether or not to process a loan with them?

  • Please edit and add country tag – Dheer Jan 6 '18 at 2:00

They didn't tell you, probably because they didn't know themselves. Like an auto loan or mortgage, where you've got to fill out "paperwork" and let them do a credit check.

On the Whole Life policy which my grandparents purchased in my name, I just called the salesman and he told me over the phone. Thus, my guess is that some companies have fixed rates, and others variable.

  • If I start processing the loan, do they have to give me the rate within so many days? I just didn't understand why they couldn't tell me. When I called previously (although that was months ago), they told me everything I needed to know. – dillowen Jan 5 '18 at 22:44
  • That part, I don't know. – RonJohn Jan 5 '18 at 22:45
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    Why would an insurance company need to run a credit check when they are lending you your own money? – JoeTaxpayer Mar 7 '18 at 0:18

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