When Can You Borrow From Your Life Insurance? 
Depending on the type of product , and on the contract , you could do so after one month , or perhaps after one year . But the most important consideration is this : you should borrow from your life insurance policy when youre prepared to make a reduced benefit available to the beneficiary . This is because the loan -LRB- plus interest -RRB- will be taken off the top of the death benefit , should a claim have to be paid while it is still outstanding . That could very well short-change your family or business with regards to the cash that they need . The moral of the story : never borrow from your life insurance until youre ready to make the trade off in death benefit . 