Is Borrowing Against Life Insurance A Good Idea? 
Is borrowing against a policy a good idea ? Yes , it can be , it can depend though . Keeping the policy in force is important as it creates some tax advantages on the funds borrowed as you are essentially taking a part of your death benefit early for use elsewhere . Where borrowing against your life insurance is a good idea is in what steps you have to take to do compared to other avenues . Have you ever sat in a bank office cubicle while someone else decides if your need is worthy enough ? How they have to decide if your need fits ? A great thing about borrowing against your value is you simply make a call and the money is wired to your bank account . You are not asked to explain your need , your need is not subjected to review by somebody else . Simply put , what you want to do with those funds is not subject to the approval of somebody else . 