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However, loans against the value of an insurance policy are generally not taxable and can provide the cash to help with unexpected expenses. The cash value of a life insurance policy accumulates tax deferred, but if you surrender the policy, you'll incur an income tax liability for funds that exceed the premiums you have 

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Jan 14, 2017 Find out if your particular policy permits you to take a loan. Take a look at your policy to check if there's a loan provision. You can also contact your agent for this information. For the most part, you can borrow against a permanent life insurance policy, since it has a cash surrender value. As for term life