How soon can you take out a loan? So I would wait to be safe, even though you fund the policy probably a day or two it’ll show up in your account and you’ll have it’ll show up as available loan amount and you could take out a loan. What happens in the most Insurance Companies that it takes about 10 days for the funds to truly clear within their system.
Within that 10 days, if you pull out a policy loan, it raises some flags and there’s some additional documentation possibly people need to provide. It’s gotten a lot stricter in the case as of money laundering and fraud, maybe on the rise. Just be aware, even though it shows up in your policy as available.
To be safe, I would wait that 10 days or be prepared to have the agent verify that you, as the policy owner, are aware of the loan, verify your bank account.
And things of that sort when we’ve had some members or some clients like within two or three days pulled out the loan and it just raises some flags within the insurance company.
Which just means they could freeze. It just makes it a little more headache to get it frozen. I just went through this last week. I was trying to get a loan from one of my new policies and I had those send, sending a letter with a blank check. And some like bank statements to go through all that nine yards, which is annoying to get it into there system. And then I had to call it request spot so it takes longer than you think.
But luckily it’s not as hard as taking money out of your broker or your retirement funds. That’s the hardest thing ever!
Once everything is set up, it is pretty smooth sailing. It’s just that initial loan, or if you’re on a policy anniversary, and then you just funded it and you’re pulling out the loan right away again, it’s just those two times there’s going to be, I think a lot of scrutiny if you don’t have your bank account set up.
I’ve got two policies at two different companies. One of them, I can take withdrawals over $15,000 over the phone. I always just call them up. When I send in a check or do a direct deposit from my bank account, we redeposit the funds to pay back my loan. I usually just call them and I specify what it’s going to. Is it going to paid up riders or they are going to my base because they have to differentiate for them. The other one, I have to do like a signed form and email it in all different ways.