Which Life Insurance Can You Borrow Against? 
You can not borrow against Term -LRB- temporary -RRB- life insurance . But you can borrow against Whole Life or Universal Whole Life . These latter two are permanent types of life insurance , or cash value types of life insurance . They accumulate value , which you can borrow against . You can choose whether to pay the loan back or not . But reductions in death benefits are likely to occur if you do not pay back the loan . Proceeds of the loan are not taxable , so long as the policy is kept in force . Thank you . GARY LANE . 