How Can I Borrow Against My Life Insurance? 
You may not want to borrow at all if you can access withdrawals to basis without a taxable event . There are rules that govern this specific aspect of cash value access , but confirm with the life insurance company before moving forward with this idea . The best way to borrow against a policy is to purchase the best accumulating cash value TAMRA compliant policy with the lowest policy loan cost . Keep in mind that the vast majority of cash value policies need time to accumulate enough cash value to access and that surrender charges could come into play , eroding the amount you may want to borrow . There are several policy loan provisions in cash value policies . Heres a quick inventory : zero net cost loans , wash loans , spread loans , direct recognition loans , participating loans . There policies loans can be fixed rate or variable with two sets of rates : current company practice and guaranteed contract . 