Can You Take A Loan From Your Life Insurance? 
Borrowing from a cash value life insurance can give you access to cash value life insurance policy loans of gain . Policy loans incur interest charges and every policy charges differently : zero net cost loans , wash loans , spread loans , direct recognition loans and participation loans . There are rules to withdrawals of basic that govern the first 15 years of a life insurance policy , so be aware of it before withdrawing . Withdrawals of basis may be tax free as are loans provided the contract is kept in force for the life of the insured . You may want to withdraw no cost basis rather than incur a policy loan interest charge . 