I have a death benefit value of 340k. I need 50k for school , can I borrow some cash value and the rest from my death benefit? Since there isn't enough in my cash value, can I brrow some from the death benefit?
You can borrow from the cash value, (usually up to 50% of the cash value) but your balance may be too low at this point to be able to effect this.
You can't access the death benefit unles your policy has a provision for doing so in the event of chronic illness or long term care. You can't do it for school expenses.
Unfortunately, you can only borrow from cash values, not from death benefit. And if you did, you'd need to make sure that any such borrowing didn't put the policy in danger of lapsing.
I'm curious what your actual life insurance needs are. Do you have debts that would need to be paid off, a spouse and/or children who'd need funds to replace your lost income, other obligations? If this policy was sold to you based on the concept that you could "be your own bank," it might be worth reviewing your financial situation to see if this is actually the right kind of policy for you.
Hope that helps.
First, let me say that without knowing your situation it is hard to properly give you advice.
Second, you can generally never “borrow” from your death benefit but sometimes you can get an advance of part of it if you are terminally ill and the policy allows for it. (Always read the policy for the details.)
However, I would say that every Universal Insurance policy I have ever seen is BAD. I’m sure if we did the math you would find you have over paid for small return. As I’m sure you’ve seen by now. Fundamentally you own a policy where the cost goes up every year. When the cost is more then what you pay month to month the policy will take it out of the “cash value” as a loan. Universal Life Insurance will eat its self-alive leaving you less or maybe nothing at all.
I would talk to and advisor about replacing your UIL with a term policy and investing your money elsewhere to achieve the financial goals you may have. I will be happy to recommend someone in your area to answer any further questions.
I strongly recommend that you talk to a financial advisor about how to get this 50K for school and the appropriateness of the life insurance policy that you have been sold. As others have said, this life insurance policy is not going to fund any of the 50K you need, since the cash value is not there. But depending on your situation there can be other sources for these funds:
There may be others. Each source of cash has positives and negatives. A financial advisor can help you by explaining the pros and cons of your options.
I agree with the others that the Universal Insurance Policy may not be best, but its hard to exactly know without knowing more details about you. It depends on a number of factors. Even if you only bought it 2 years ago. Again, a financial advisor should be able to help you determine the benefits of keeping or terminating this policy.