If you own a permanent life insurance policy (“whole life”), you may be able to borrow against the cash value. These loans are secured by your ownership interest in the policy, so they may carry a relatively low rate of interest. What’s more, generally you aren’t required to repay these loans according to a fixed schedule. Interest that accrues without being paid is simply added to the amount of your loan balance. If you don’t pay attention, though, you can end up with an unexpected tax bill. (more…)