3

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
2

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
  • 1
    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

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.