POF Options - Cash Value/Borrowing of Life Insurance?

[Daniel Dietz]

Hi,

So far I have been using my IRA to purchase properties so the POF has not been as issue as I have been just using cash from within my IRA. So the whole POF thing is a bit new to me.

With that being said, I am planning on starting to buy some properties OUTSIDE of my IRA with 'traditional methods'.

One thing I am not clear on if the 'Cash Value' of Life Insurance can be used for a POF letter/source? I would prefer to borrow these funds from the account (I have talked in depth with my agent about this - the cost is about 4% interest) instead of withdrawing since part of the benefits of the account (such as interest rate paid) are based on the cash value, and dont change even if that cash value has an outstanding loan against it.

Do any of you have experience with this in regards to the whole POF requirements?

Thanks, Dan Dietz