Can You Take A Loan On A Term Life Insurance Policy? 
No , term life insurance does not build cash value to borrow against . You can only borrow from a policy that builds cash value , which would be a permanent insurance policy such as Universal Life or Whole Life insurance . If you have a term policy , you may be able to convert all or a portion of the coverage to a permanent program that can build cash value -LRB- you can also look at securing a new policy to supplement or replace the existing one as it may offer better guarantees and/or lower premiums than the conversion option for the existing coverage -RRB- . I hope the information is helpful - please feel free to contact me for help with your coverage and if you have any other questions . Thanks very much . 