How Much Can I Borrow Against My Life Insurance Policy? 
In Canada , when you borrow against your life insurance policy the amount you can borrow in stated in the life insurance policy . Important to remember , when you ask for a loan quote , to ask what if any of the amount borrowed will be taxable . Borrowing against a policy directly from the insurance company is considered a `` deemed disposition '' and can trigger a taxable event . When / if you repay the amount you receive a `` tax credit '' . Borrowing directly is private . If you use the policy as collateral from a bank , the loan is not a `` deemed disposition '' and therefore does not trigger a taxable event . The amount you can borrow varies , however , guidelines range from 50 % to 90 % depending on the type of policy and investment . There are consequence and alternatives to borrowing they should be discussed with a good local agent to ensure that you are informed . On a planning note , there are a number of strategies , that leverage individual and corporate borrowing . If you have further questions , contact me . If you are in Nova Scotia , you can request a complimentary strategy session at www.jpw.ca . 