When Can You Borrow From Your Life Insurance? 
The short answer is once you have accumulated enough cash to borrow from , but there is much more to it . First , you must have a cash value or permanent life insurance policy such as a whole life or universal life insurance policy in order to borrow funds . If you purchase your coverage at target premium , in the first 5 to 7 years all of your premium dollars will most likely fund your life portion of the policy . This means cash value really begins to accumulate significantly in the following years . There is a limit to the amount of cash that can be borrowed and leave the policy intact , so the death benefit will be paid at your death . I recommend sitting down with your agent to discuss your options before withdrawing cash from your cash value life insurance policy . 