Borrowing Against Whole Life Insurance at a Bank

This post originally appeared as an article on Kim Butler’s Partners for Prosperity website at

We thought this to be valuable information to also share with the Truth Concepts community. 


We get many questions on using life insurance policies with cash value as collateral for bank loans.

First, you can ONLY borrow against a policy with cash value, such as whole life insurance. You cannot use this strategy at all with a term insurance policy.

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. Please contact them directly for more information.

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.

Brittnay Wittnebel
Kensington Financial Associates
2875 NE 191st Street, Suite 603
Personal AND “Direct to Business” loans
OK to use multiple policies for collateral
Aventura, FL 33180
(305) 466-0577  ext. 102
(608) 346-3205

Kensington Informational Flyer

Brandon Miller
State Bank

Lines of credit from $20k
404.290.0050 (cell)
404.239.8664 (office)

State Bank information flyer

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)

Kathy Smith
AVP, Portfolio Manager
3490 Piedmont Road NE, Suite 700
Atlanta, GA 30305
404.814.8006 | f: 404.393.9925

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.