What Life Insurance Can You Borrow Against? 
Only permanent cash value life insurance policies have cash values . Borrowing policy loans have interest charges associated with them from zero net cost loans to direct recognition loans . And keep in mind that policy loans are only free in a modified endowment contract that is kept in force for the life of the insured . Another option of accessing cash values may be withdrawing basis or contributions , but the force out rule governs the first 15 years of a permanent life insurance policy and may be subject to a taxable event . Before moving forward with any of these ideas consult your tax adviser . 