Can You Borrow On Term Life Insurance?

  1. 16470 POINTS
    David Osgood
    Agent, Rural Mutual Insurance Co., Union Grove, WI
    Typically term life insurance does not provide any cash value, so you would not be able to borrow from it. At this point I am not aware of any term life insurance policies that offer cash accumulation that allow for loans on the policy. There is a type of term policy known as "Return of Premium" that provide a portion of your premium payments at the end of the policy term if the policy has not been collected on and all policy requirements have been met during the policy period. To find out more about this type of policy contact your local agent to find out if they have it available within the policies they offer.
    Answered on June 5, 2013
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  2. 63333 POINTS
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    Peggy MacePRO
    Most of the U.S.
    Unless a life insurance policy has cash value, you cannot borrow from it. Term life insurance is "pure" protection in that all the premiums go to the death benefit rather than any build up of cash value. Thus, you cannot borrow from Term insurance or any other life insurance for which a cash value has not built up within the policy.
    Answered on June 6, 2013
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