How does the loan feature in a life insurance policy work? 
Loan features in a life insurance policy depend on the length of the policy and the cash value that has been built up . You can borrow against the cash value and continue to earn interest on your policy and make payments with a low interest rate to replenish the policy . You may also have a life insurance policy that allows you to borrow from the death benefit and take it as a loan that does not have to be paid back . Your cash value will continue to build and increase the death benefit . 