Can I Take Out A Loan On My Life Insurance Policy? 
Yes as long as there is loan value in the policy . A life insurance cash value is divided into two parts , the Surrender Value and the Loan value . The Surrender Value is the money you would receive if you cash in or surrender your policy . The insurance is no longer in force . The Loan value is the amount of money you cn loan on the policy . The insurance remains in force and if death occurs the loan amount is subtracted from the death benefit . The loan amount is sometimes different from the surrender amount due to administration charges that may be built into the policy . You can not borrow the full face amount of the policy . 