Borrowing Against Life Insurance: Pros, Cons and How It Works

If you have a permanent life insurance policy with cash value, you can borrow against it without a credit check or strict repayment schedule. Loans typically max out at 90% of the cash value and often have lower interest rates than unsecured loans. However, unpaid loans reduce death benefits and risk policy lapse, which may trigger taxes. Borrowing is quick and flexible but carries risks, so consulting a financial adviser is advised.