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Loan on life insurance

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    Loan on life insurance

    I have a life insurance policy (variable mutual fund life insurance) that has a $4400 cash out value. My state (Utah) has a $1500 exemption for life insurance. I have had this policy for years and do not want to it to end. The insurance company will loan me $4200 of the $4400 and allow the policy to survive. If I put this loan money into a new furnace for the house before I file would this be allowed?

    Thanks in advance...

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