Managing Life Insurance: Loans or Withdrawals?

Katt, Peter C.
November 2009
Journal of Financial Planning;Nov2009, Vol. 22 Issue 11, p38
Academic Journal
The article offers information on loans and withdrawals on managing life insurance policies in the U.S. It notes that both will have different effects on the policy at various times in the future. It presents a case where a universal life (UL) insurance policy was taken out 10 years ago. It mentions that withdrawals should be avoided if it will create taxable income. The author comments that policy loans and withdrawals for UL apply to variable universal life (VUL) with one very large caveat. It also discusses the similar characteristics of policy loans and withdrawals on whole life to UL.


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