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How to take a National Life Group life insurance loan

How to Initiate a Life Insurance Loan From National Life Group

A life insurance loan provides access to the cash value you have built up, income tax-free.1

When you’re ready to take a life insurance loan, borrowing against your policy from National Life, there are just a few steps to follow.

Key things to know about the life insurance loan process:

  • The quickest way to initiate a life insurance loan is using the mobile app or online customer portal (for loans up to $50,000).
  • You don't need approval to take a loan, but your permanent life insurance policy will need sufficient cash value. Loans are typically available after the first policy year, but may be available earlier.
  • It may take up to 3-5 business days to process your request once we have all necessary information.
  • You cannot borrow against a term life insurance policy.

1Requires the policy to stay inforce. Taking a life insurance loan will reduce the policy’s cash value and death benefit and may result in a taxable event. Except in the case of a Modified Endowment Contract (MEC), withdrawals up to the basis paid into the contract and loans thereafter will not create an immediate taxable event, but substantial tax ramifications could result upon contract lapse or surrender. For MECs, contract loans and withdrawals are considered taxable income.

To take a loan using the online customer portal, follow these steps to request funds:

1. Log in at https://www.nationallife.com/customer/. If you're a new user, register to set up an account.

2. Under My Policies (left nav), choose the policy you wish the borrow from.

3. Navigate to the Loans tab, where you will see how much cash is available for a loan (if any).

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4. Click on Request Funds to initiate a loan.

5. Select Continue if you are sure you want to take a loan.

6. Enter the loan amount you wish to request and click Continue.

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Note: You may see a message that some of your riders will no longer be available. Contact your agent or the Customer Experience Center for more details.

7. To access using your funds using a loan, select the Loan option. You may also have a Withdrawal option, which permanently removes the amount borrowed from your policy.

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1. Choose whether you want to receive a check or receive the funds through an electronic funds transfer (EFT) to your bank account. If there’s more than one loan type option, you will also have the option to change the loan type.

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Confirm that you have read the disclosures (and update contact information as needed) and submit the loan request.

You will receive a confirmation message that your request has been received. It may take up to 3-5 business days to process your request once we have all necessary information.

To take a loan using the National Life Group app, follow these steps to request funds:

1. Open the app. If you're a new user, register to set up an account.

2. Choose the policy you wish the borrow from.

3. From the Actions drop down, select Request Funds to initiate a loan.

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4. Select Continue if you are sure you want to take a loan.

5. On the next screen, you will see how much cash is available for a loan (if any). Enter the loan amount you wish to request and click Continue.

Note: You may see a warning message that some of your riders will no longer be available. Contact your agent or the Customer Experience Center for more details.

6. To access using your funds using a loan, select the Loan option. You may also have a Withdrawal option, which permanently removes the amount borrowed from your policy.

7. Choose whether you want to receive a check or receive the funds through an electronic funds transfer (EFT) to your bank account. If there’s more than one loan type option, you will also have the option to change the loan type on this screen. Select Continue.

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8. Confirm that you have read the disclosures (and update contact information as needed) and select Continue

9. Submit the loan request.

To initiate a loan using a loan form, contact our Customer Experience Center.

Note that all loans over $50,000 require a loan form.

Next Steps:

Products issued by:

National Life Insurance Company® | Life Insurance Company of the Southwest®

National Life Group® is a trade name of National Life Insurance Company (NLIC), Montpelier, VT, Life Insurance Company of the Southwest (LSW), Addison, TX, and their affiliates. Each company of National Life Group is solely responsible for its own financial condition and contractual obligations. Life Insurance Company of the Southwest is not an authorized insurer in New York and does not conduct insurance business in New York.

 

TC142996(0724)3