Can You Take A Loan Against A Whole Life Insurance Policy? 
If the whole life policy has a cash value you can borrow from the insurance company using your policy as collateral . the amount you can borrow can be as high as 90 % . Check with your life insurance broker to be sure . In Canada , if you borrow in excess of the adjusted cost base of the policy , it will trigger a taxable event . If / when you repay the loan you receive an adjustment you can use when you file your taxes . If you borrow from a bank using the policy as collateral , it does not trigger a taxable event . Check with you life insurance broker , to be advised of the consequents of borrowing . If you do borrow reminder to at least pay the interest on the loan to avoid compound and putting the policy ar risk of lapsing . If you have further questions , or fell that I could be of assistance , please do not hesitate to contact me . 