When can a loan be taken from a whole life insurance policy?

A loan can be taken from a whole life insurance policy as soon as it develops a cash value. Whole life policies build cash value over time, which is a feature of the policy that allows the policyholder to borrow against the accumulated savings. This cash value typically begins to accrue after a certain period, often within the first few years of the policy. Once there is sufficient cash value, the policyholder can access this amount through a loan.

The ability to take a loan is tied directly to the cash value, making it essential for the policyholder to understand that they cannot borrow against the policy until that value is established. This cash value continues to grow throughout the life of the policy, affecting the amount that can be borrowed in the future.