Jeffrey Manola is an experienced life insurance agent and the founder of Top Quote Life Insurance. His mission when he created Top Quote Life Insurance was to provide online consumers searching for life insurance with the absolute best quotes for term life insurance, permanent life insurance, no medical exam life insurance, and burial insurance. Not only does he strive to provide you with the ...

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Written by Jeffrey Manola
Founder & Licensed Agent Jeffrey Manola

Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insur...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years Leslie Kasperowicz

UPDATED: Jun 30, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right life insurance coverage choices.

Advertiser Disclosure: We strive to help you make confident life insurance decisions. Comparison shopping should be easy. We are not affiliated with any one life insurance provider and cannot guarantee quotes from any single provider.

Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different life insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance-related. We update our site regularly, and all content is reviewed by life insurance experts.

Facts You Should Know

  • Policyholders can borrow from permanent life insurance policies
  • You can pay loan interest out of pocket or borrow the interest
  • Exceeding the policy’s cash value could cause your loan to lapse

In addition to providing life insurance quotes, many life insurance companies allow customers to borrow from policies. Permanent life policies feature a cash value that you can borrow from, and it won’t affect your death benefit as long as you pay it back.

Learn more before you buy life insurance from companies that you can borrow from and enter your ZIP code above to find free life insurance rates in your area.

How do loans work from life insurance companies that you can borrow from?

The cash value of permanent life insurance plans, like whole life or universal life insurance, can be borrowed when you need money. The Insurance Information Institute says that this is one of many reasons to consider a permanent life plan.

To see how much life insurance rates from companies you can borrow from cost, take a look at the table below. It lists life insurance rates for men from various life insurance companies:

$30,000 Whole Life Insurance Average Monthly Rates by Age and Company for Men

CompanyAge 50 Average Monthly RatesAge 60 Average Monthly RatesAge 70 Average Monthly RatesAge 80 Average Monthly Rates
Mutual of Omaha$81.06$121.86$214.69$391.56
Liberty Bankers Life$82.27$128.14$210.67$431.14
United Home Life$84.35$125.38$215.19$407.10
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Below are life insurance rates for women from various life insurance companies that you can borrow from:

$30,000 Whole Life Insurance Sample Monthly Rates by Age and Company for Women

CompanyAge 50 Sample Monthly RatesAge 60 Sample Monthly RatesAge 70 Sample Monthly RatesAge 80 Sample Monthly Rates
Mutual of Omaha$67.60$92.20$153.31$288.89
Liberty Bankers Life$67.45$94.76$155.11$318.23
United Home Life$69.47$97.55$148.71$305.13
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While permanent life policies have higher rates with life insurance companies that you can borrow from, they have no expiration date. When the money paid into the policy exceeds the death benefit, it creates a cash value, similar to a savings account.

A life insurance policy loan allows you to borrow against the cash value of a policy. Life insurance companies act as loan companies that take life insurance as collateral. If the policyholder fails to complete the payments, the money due is withdrawn from the death benefit.

When taking out a loan from a life insurance policy, you’re borrowing from yourself. For this reason, there is no approval process or credit check, and you don’t need to disclose how you’ll be using the money. The funds are also not recognized as income by the IRS, making it tax-free.

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How do you pay back loans from life insurance companies that you can borrow from?

When paying back a life insurance loan, you have the option of paying the interest out of pocket or borrowing the interest. Borrowing the interest will result in a loan balance compound, meaning the interest due each year will be added to previously unpaid periods.

The loan interest continues to accrue, regardless of whether you pay the bill. Promptly paying your loan back will ensure that your loan interest doesn’t exceed the policy’s cash value, which could cause your policy to lapse.

If you feel as though you won’t keep up with your payments, it might be better to consider life insurance companies that you can’t borrow from.

How do you monitor loans from life insurance companies that you can borrow from?

While repaying your loan, you should monitor your progress by requesting an in-force policy illustration each year. This document shows the impact of your loan by using current values to project future earnings. These values are based on:

  • Current earnings – The interest rate or dividend that helps grow your cash value
  • Mortality – The cost of your life insurance
  • Expense charges – The insurance company’s fees

Obtaining an in-force illustration will also help you determine the impact any modifications might have on your loan. When requesting an in-force illustration, make sure it includes the following scenarios:

  • Repaying the policy loan in full
  • Paying rates and interest out of pocket
  • Borrowing future rates and loan interest
  • Showing what happens if your current rates stay the same
  • Showing the rates needed to endow the policy at maturity
  • Any actions you’re considering taking

Another part of monitoring your loan is calculating the potential gain in the policy. A life insurance loan calculator will include:

  • Addition of the net cash value, any dividends received, and the outstanding loan balance
  • Subtraction of the cost basis, like payments made into the policy

Make sure to consider what you can expect from your loan before taking any money out. If you’ve yet to purchase a policy, this will help when looking at quotes from life insurance companies that you can borrow from.

What You Need to Know About Life Insurance Companies That You Can Borrow From

Borrowing from your life insurance policy allows you to obtain money for any need. When borrowing from your policy, the company uses your policy as collateral, taking any amount you don’t repay from your death benefit.

Knowing about life insurance companies that you can borrow from will help you decide if this choice is right for you.

Now that you know about life insurance companies that you can borrow from, enter your ZIP code below to get free life insurance quotes in your area.