How Does A Whole Life Insurance Loan Work? 
That is a great question ! Whole life policies start to accumulate a cash value after the first couple of years the policy is in force . Over time , this cash value can grow to be a fairly substantial amount of money . In the event that you needed some quick cash , you can borrow from this fund , pretty much no questions asked . To do this , you just contact your agent , and ask if your cash value is great enough to cover what you want to borrow . I suggest this , because the amount borrowed can be enough over time with interest to cause your policy to become insolvent , and you are left without insurance . Your agent can help determine how much you can safely borrow -LRB- especially if you are n't really planning to repay it -RRB- . They will write you a check , and you now have tax free cash in your hands to use as it 's needed . Bear in mind that your death benefit will be reduced by however much your loan with interest is at the time you pass ; and that if the interest on the loan exceeds a certain amount , the company will cancel your policy . But it is still the best way to get quick cash without any credit hassles . I hope that helps , thanks for asking ! 