How much of a loan am I allowed to borrow from a life insurance policy?
The same scenario as above except that your money in a Variable Life policy is generally “invested” in “sub-accounts” (read mutual funds, not literally) and consequently is subject to much more “market risk” than funds in a Universal Life policy which are invested in the “General Account” and where the rate of interest earned is the only variable factor with direct relation to the Cash Value.
