How Much Can You Borrow Against Life Insurance? 
Each company is different . Most will specify exactly what the loan value of your policy is . You can check on your last annual statement or , if you want up to date information , the company can give you a current statement . Most times , the loan value is less than the cash value . The other thing you must be aware of is that taking loans does have some consequences . First , you wo n't be earning as much return on the cash value . There is an interest rate within the policy that will erode the cash value if you do n't pay it back . Secondly , any outstanding loans will be subtracted from the death benefit . So , be careful about taking a loan from your policy . I know there are strategies that use the cash value in a life insurance policy to finance other purchases and , if done properly , can be a good thing . Just be sure you 're doing it in the correct way and be aware of the consequences before you take the loan . Talk it over with your agent so you know exactly how you 'll be impacted . That 's why it 's so important to have an agent that you know and trust . 