When Can You Borrow From A Whole Life Insurance Policy? 
Talk to your Insurance Professional about the specific terms and conditions of your policy , of course . However , generally speaking , once a `` Whole Life '' or other type of permanent Life Insurance policy has insice cash value accumulated , you may be able to access that cash . Be careful , though , because some policies may offer a loan provision whereas others may require a ful or partial surrended of the policy . In the later case , you would receive the cash but risk loosing the coverage you purchased . Be sure to ask your Insurance Professional about any possible tax ramifications that may be triggered as well . Finally , understand that if it is a loan , it is expected to be paid back . There would likely be a small interest rate involved in addition to the principal borrowed . Should you die while the loan is outstanding , it may very well be that the total amount owed -LRB- principal and accrued interest -RRB- may be deducted from the death benefit you intended for your beneficiary . 