Borrowing Against Whole Life Insurance at a Bank

We get many questions on using life insurance policies with cash value as collateral for bank loans. While this strategy does not work at all with a term insurance policy, whole life insurance is excellent collateral.

Often, local (as opposed to large/national) banks and credit unions will lend against the cash value of life insurance. So you may want to start with your local banker.

Additionally, the banks listed below have been referred to us as providing this service nationally.

Loan-to-value limits are usually 80 or 90%. (You could borrow up to $80k to $90k with $100k of cash value as collateral.) Bank rates are often lower than the interest rates for policy loans, with current rates as low as prime (3.5% as of this writing in 2016).

If you have further questions, reach out to us at

Brandon Miller
State Bank

404-290-0050 (cell)
404.239.8664 (office)

Matthew Hale
Heritage Bank

Greater Atlanta Area
404.933.5144 (cell)

Patricia Davino
Valley National Bank

1455 Valley Road
Wayne, NJ 07470
(862)261-3065 (direct)
(973)934-5886 (cell)

For more information about how to use your life insurance to benefit you now, see Kim D. H. Butler’s book, Live Your Life InsuranceKim and Jack Burns’ new book,  Busting the Life Insurance Lies.

And of course, you can also contact us directly to set an appointment.