Can You Take Out A Loan On A Term Life Insurance Policy? 
NO , you can not take a loan out on a Term Life Insurance Policy , unless , you have a Return of Premium -LRB- ROP -RRB- Term Life Insurance Policy . Simply put , Return of Premium means you will get 100 % of the money you paid in at the end of the term . During the term period , a few companies will let you `` borrow '' the money that is building . 