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Nov 11, 2019 by |

California Life Insurance and Elder Abuse Attorney: Loans Against Whole Life Insurance Policies


Dangers of Premium Payment Loans

Tax Consequences

Borrowing against a whole life insurance policy can have serious economic and tax consequences down the road if policyholders are not careful. Insurance agents use the fact that policyholders can borrow against the cash value of whole life policies as part of their sales pitch. The selling point encourages the client to view a whole life policy as a private bank where the policyholder can borrow money from time to time. Our litigators urge caution when borrowing against any whole life policy as there may be economic consequences, like big tax bills, down the road whenever you borrow. If you’re over 60 and live in California and have suffered a loss on a whole or universal life insurance policy, call the insurance and financial elder abuse attorneys at Evans Law Firm, Inc. today at 415-441-8669.

Often, policyholders borrow against the cash value in whole life policies to make their ongoing premium payments. The borrowing keeps the policy in force until the cash value is reduced to zero by the premium payments and interest incurred. In other instances, policyholders may borrow for college tuition money for their children or other expenses. Unfortunately, the loans are often forgotten until the policy coverage is lost entirely and a large taxable gain is created (by the write-off of the amount borrowed).

In short, policy loans can end up creating huge economic problems for policyholders and are not easily fixed. Agents seldom monitor policies once the policies are sold so the policyholder may be in the dark as to the ultimate consequences of policy loans. Typically, agents do not fully explain how policy loans work at the time of sale either. Before borrowing against any whole life policy, even for premium payments, consult your tax advisor.

Contact Us

If you are over 60 and surrendered a whole life or universal life insurance policy in California, contact Ingrid M. Evans and the other Evans Law Firm, Inc. insurance attorneys for a free review of your policy at (415) 441-8669, or by email at Our attorneys have experience with complex indexed universal and whole life policies and annuity contracts and cases against large insurance companies. We can help guide your case through a jury trial or toward an equitable settlement. We handle cases involving physical and financial elder abuse, nursing home abuse, whole life insurance and universal life insurance, and indexed, variable, and fixed annuities.

Some of the leading providers and distributors of whole and universal life insurance and annuities in California are listed below. We are not in any way suggesting that any of these carriers or distributors has done anything wrong or offers unsuitable variable annuities. Rather, the list is provided solely as a reference for our readers.

AIG/American General Life Insurance Company

Allianz Life Insurance Company of North America

American Equity Investment Life Insurance Company

American General Life Insurance Company/AIG

American International Group, Inc. (AIG)

American National Life Insurance Company

Americo Financial Life and Annuity Insurance Company

Ameriprise Financial/RiverSource Life Insurance Company

Ameriprise Financial/Securities America, Inc.

Athene Annuity & Life Assurance Company

Athene Annuity and Life Company

Athene USA

Aviva Life Insurance Company

AXA Equitable Financial Services, LLC

AXA Equitable Life Insurance Company/AXA US

AXA Advisors, LLC

Bankers Life Insurance and Casualty Company

Berkshire Hathaway Group

Berkshire Hathaway Life Insurance Company of Nebraska

Brighthouse Financial, Inc./MetLife

Citigroup Global Markets, Inc.

Crump Life Insurance Services, Inc.

CUNA Mutual Group/CMFG Life Insurance Company

Delaware Life Insurance Company

EquiTrust Life Insurance Company

Fidelity & Guaranty Life Insurance Company

Forethought Life Insurance Company/Global Atlantic Financial Group

Genworth Financial, Inc.

Genworth Life and Annuity Insurance Company

Genworth Life Insurance Company

Global Atlantic Financial Group/Forethought Life Insurance Company

Guardian Life Insurance Company

Guggenheim Partners, LLC

Guggenheim Partners/Security Benefit Life Insurance Company

ING USA Annuity and Life Insurance Company

Jackson National Life Insurance Company

John Hancock Life Insurance Company

Legacy Marketing Group

Lincoln Benefit Life Company

Lincoln Financial Group

Massachusetts Mutual Life Insurance Company

Merrill Lynch Life Agency Inc.

Metlife/Metropolitan Life Insurance Company/Brighthouse Financial, Inc.

Minnesota Life Insurance Company

National Life Group

National Life Insurance Company/Equity Services, Inc.

National Western Life Insurance Company

Nationwide Life Insurance Company

New York Life Insurance Company

North American Company for Life and Health Insurance

Northwestern Mutual Investment Services, LLC

Northwestern Mutual Life Insurance Company

Northwestern Mutual Wealth Management Company

Oxford Life Insurance Company

Pacific Life Insurance Company

Principal Financial Group

Prudential Life Insurance Company

Raymond James Insurance Group

Reliance Standard Life Insurance Company/Tokio Marine Group

RiverSource Life Insurance Company/Ameriprise Financial

Securities America, Inc./Ameriprise Financial

Security Benefit Corporation

Security Benefit Group, Inc.

Security Benefit Life Insurance Company/Guggenheim Partners

Security Investors, LLC

Security of Denver Life Insurance Company/Voya

The Standard Life Insurance Company

Symetra Financial Corporation

Symetra Life Insurance Company

Transamerica Life Insurance Company

The United States Life Insurance Company in the City of New York

Unum Life Insurance Company of America

USAA Life Insurance Company

The Variable Annuity Life Insurance Company

Voya Financial Advisors

Voya/Reliastar Life Insurance Company

Wells Fargo Advisors

Western & Southern Financial Group

The Western & Southern Life Insurance Company

World Financial Group Insurance Agency, Inc.

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"We contacted Evans Law Firm when we were unable to collect on a Long-Term Life Insurance policy for an elderly family member. Ingrid responded almost immediately with an offer of a free consultation. I was immediately impressed with her passion for justice!!"
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