Need to know how to borrow from a Pacific Life non-retirement plan? How you go about borrowing from this type of plan will depend upon the type of plan you have. Borrowing from a life insurance policy differs from borrowing from an annuity or mutual fund. The company prefers that a person contact them directly by telephone rather than communicating by email. To begin borrowing from a Pacific Life non-retirement plan, you should do the following:
- Determine how much you wish to borrow. Borrow only the lowest amount you can. Figuring out how much you need to borrow from your Pacific life non-retirement plan does not take a lot of time.
- Decide how or if you will pay the loan back. Most loans from a Pacific life non-retirement plan are paid each quarter. If you choose not to pay it back, the amount owed plus interest will be deducted from your plan at cash-in time.
- To borrow from a Pacific Life non-retirement plan, you must contact your agent by phone to set up an appointment. The agent will then ask you what amount you wish to borrow, and may even ask why you are borrowing the money. The agent will then look at your plan to see if there have been any late payments (in the case of a life insurance policy) or any activity on your account.
- Meet with the agent at her office. Borrowing from a Pacific Life non-retirement plan requires you to fill out paperwork before you will receive your money. The agent will be the one to conduct this part of the process.
- After completing the paperwork, you will receive the loan. At the beginning of the quarter (January, April, July and October) you will receive a “Loan Payment Due” notice. When borrowing from a Pacific Life non-retirement plan, the amount on each notice will differ according to the interest rate and amount of loan left to pay.
The interest that you will be charged is less than conventional loans. Borrowing from a Pacific Life non-retirement plan should be considered carefully. While the interest rate is low, the loan will affect your plan in the future.