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Whole Life FAQ

  • Will my whole life insurance policy rates increase year over year?

    SBLI guarantees that the base premium of your whole life insurance policy premium will never increase.

  • Can I borrow the cash value of my SBLI life insurance policy?

    If you have a Whole Life insurance policy (a policy that builds cash value), you can take a loan from the available cash value. Loan interest (applicable rate) would be due in advance, from the date the loan was taken to the next policy anniversary date. The loan interest due in the initial year is taken from the loan check that we send to you so there are no initial out of pocket costs. Interest is then charged once a year on the policy anniversary. Should the insured pass away with a loan outstanding, it would be subtracted from the death benefit.

    If you would like to request a policy loan against your available policy cash value, simply contact our Call Center toll free at 1-800-694-7254. Our customer service representatives are available each business day Monday - Friday from 8:00 A.M. through 9:00 P.M. (ET). Note: When contacting our call center, you will be requested to provide positive verbal identification as a policyowner.

  • What are the tax implications of transferring cash-value life insurance or annuities?

    Section 1035 of the tax code allows for the tax-free exchange between like contracts: annuity to annuity, life insurance policy to life insurance policy, and life insurance policy to annuity. However, you cannot go from an annuity to a life insurance policy because of the additional benefits of the life policy face value. We advise you to check with your financial advisor or tax professional for further information.

  • Is the cash value of a life insurance policy free from creditors if I file for bankruptcy?

    It depends. Bankruptcy is one of the few situations when state law may supersede federal law, so whether your cash value is protected from your creditors depends on federal and state law.

  • I've been told to watch out for "churning". What does this mean?

    You have a right to be concerned. "Churning" is when a life insurance representative convinces you to take the cash value from your life insurance policy and use it to buy a newer policy, which is often more expensive. What you're usually not told is that you're going to be starting over in terms of cash-value accumulation.

    Why would a life insurance representative do this? Because he/she receives a new sales commission from your new policy.