How to Borrow Against a Life Insurance Policy with Unum Form

Borrowing Against a Life Insurance Policy with Unum

To borrow against a life insurance policy with Unum, you complete Unum's policy loan request form, which lets you access the cash value of your permanent life insurance while keeping the policy active. The loan is secured by the policy's cash value and typically does not require a credit check, though interest accrues and unpaid balances reduce the death benefit.

Eligibility and Policy Requirements

Not all policies qualify. You generally need a permanent life insurance policy with accumulated cash value, such as whole life or universal life, and the policy must be in force. Term life policies do not build cash value and cannot be borrowed against. Unum may require you to have held the policy for a minimum period and maintain a minimum cash value threshold before a loan is approved.

Steps to Complete the Unum Form

The process typically involves the following steps:

• Verify your policy is eligible for a loan by reviewing your policy documents or contacting Unum.
• Obtain the policy loan request form from your agent or the Unum customer portal.
• Complete the form with your policy number, personal details, and the loan amount you wish to borrow.
• Submit the signed form, either electronically or by mail, as instructed by Unum.
• Wait for processing, which may take several business days, and review the loan terms including interest rate and repayment options.

Loan Terms and Repayment

Unum policy loans usually carry a fixed or variable interest rate, and you can repay the loan on your own schedule. If the loan plus accrued interest is not repaid, the outstanding balance is deducted from the death benefit when the insured passes away. You can typically make partial repayments or let interest capitalize, but the structure affects the total cost and the remaining benefit to beneficiaries.

Considerations Before Borrowing

Before using the Unum form, consider the impact on your policy's cash value and death benefit, your ability to repay, and whether a policy loan is the most cost-effective option compared to other borrowing methods. Consulting a financial advisor or Unum representative can help clarify the specific terms for your policy.