How Does Borrowing Against Life Insurance Work? 
When you buy a whole life insurance policy , your premium goes to pay for insurance protection and part goes towards investment or savings . You can borrow from your investment or savings portion of your whole life insurance . You can only borrow what you have saved in your investment or savings portion . If you borrow , you have to pay back plus interest and if you were to die without paying the loan then your insurance face amount will be reduced by amount of the loan 