How Much Can I Borrow From My Life Insurance? 
This assumes you own a permanent form of cash value life insurance : participating whole life or current assumption universal life that uses differing crediting methods . Participating whole life uses spread loans and direct recognition loans . Universal life uses zero net cost loans , wash loans , spread loans and participating loans -LRB- indexed universal life . -RRB- The cash value account and the surrender cash value account holds the answer to the amount you can borrow , but keep in mind that borrowing can reduce your death benefit coverage and may have tax ramifications if the policy lapses , is surrendered or matures . 