How Soon Can I Borrow From My Life Insurance Policy? 
If you own a permanent -LRB- cash value -RRB- life insurance policy , policy loans should be possible once it accumulates enough cash surrender value . Each policy contains provisions which explain how policy loans can function for that particular contract . You can ask your agent or the insurance company directly for the loanable value of the policy . As long as the policy loan does not grow too large relative to the cash value available in the policy , there should n't be a problem . While you do n't have to repay the loan - it can be repaid out of the death benefit - care must be taken to ensure the policy is not caused to lapse as income tax would be payable in the year of lapse subject to all of the gain over the life of the contract . 