Many whole life insurance contracts build cash value. A valuable feature of a cash value life insurance policy is the ability to borrow from your policy’s cash value. However, taking out a policy loan can have a significant impact on your policy’s performance. In addition, any outstanding loan balance and interest will reduce proceeds paid to your beneficiary.
Interest on your loan accrues daily and is billed annually until the loan is repaid. Unpaid interest is added to principal where it continues to accrue and compound. This may result in the loan exceeding the cash value of your policy. If this happens, outside funds may be needed to avoid contract termination and potentially adverse tax consequences. Mail a check to the attention of the Customer Service Department. The check should be made out to Interstate Life Insurance Company. Call the Customer Service Department at (800) 233-3750 ext. 503 to request automatic monthly loan repayments from your checking account. The amount you choose should be no less than $10 per month or the amount necessary to cover monthly interest charges on your loan; whichever is greater.
Complete a CA Loan Request Form C-8194 and send it to us by mail, email or fax.
Choose one:
