How soon after you get a whole life insurance policy can you borrow against it?

Question

Also, does anyone know about the tax penalties that come with borrowing against your policy?

Answer 1

There are no tax consequences, because you are essentially borrowing your own money.

You can only borrow once the policy begins to accumulate a cash value, but  it takes a long time before any cash value is accumulated, sometimes more than 10 -15 yeats before there is any significant value at all.

Life ins pilicies are designed to be just that, insurance against dieing, not a source of funds if you need a loan.

Answer 2

There are no tax penalties, but why would you want to borrow against it???? You will basically be charged interest on the money your paying to the insurance company to begin with. You're getting doubley ripped off. My suggestion.....cancel the whole life policy and get a term policy. You'll have more money in your pocket every month because it's less expensive and then....you might not even need to take out a loan.