Interest on a Loan from My Life Insurance Policy?

Q: I currently have a universal life insurance policy and have had this policy for 11 years. I took money out of the policy about a year ago and I just received a bill from the company for interest owed.

I am a little confused because... I thought the money I took out was money that was mine that built up in the policy, like a savings account. I would guess that I didn't understand the policy when I bought it. Can you shed some light on this subject.

A: It's not your money. If it was, you wouldn't have to 'borrow' it. Of course, that's also why you don't have to pay taxes on it--because it's a loan. As such, you have to pay the insurance company interest on it. Probably a little different than how it was presented?

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