How To Borrow From Life Insurance Plan? 
Permanent cash value polices have four mortality product platforms : participating whole life insurance and current assumption universal life insurance . Current assumption has three crediting methodologies : interest rates , equity / bond subaccounts , domestic and foreign indices . Participating whole life has two basic loan provisions : spread loans and direct recognition loans . Current assumption universal life has four loan provisions : zero net cost , wash , spread and participating loans . The cost to borrow your money from your policy will vary depending upon which policy loan provision your life insurance policy uses . It becomes even more critical when youre using life insurance as a supplemental retirement income vehicle . The loan cost can be as low as zero up to 350 basis points , so it matters . 