What Kind Of Life Insurance Can I Borrow Against? 
There are four types of cash value accumulating life insurance products : participating whole life , current assumption universal life , indexed universal life and variable universal life . Participating whole life has two basic loan provisions : spread loans and direct recognition loans . Current assumption universal life has four loan provisions : zero net cost , wash , spread and participating loans . The cost to borrow your money from your policy will vary depending upon which policy loan provision your life insurance policy uses . It becomes even more critical when youre using life insurance as a supplemental retirement income vehicle . The loan cost can be as low as zero up to 350 basis points , so it matters . 