Can I borrow against my final expense insurance policy?

Yes. Because final expense insurance is typically whole life insurance, it accumulates cash value that you can borrow against through a policy loan. Most carriers allow loans once sufficient cash value has accumulated—usually after the first two to three years of the policy.

Policy loans are straightforward: you contact the carrier, request a loan up to the available cash value, and receive the funds without credit checks, income verification, or loan approval processes. The money is technically yours—it is secured by your policy's cash value—so there is no set repayment schedule.

However, an outstanding loan balance plus accrued interest reduces your death benefit. If the loan grows to exceed the cash value, the policy may lapse, eliminating coverage and potentially creating a taxable event. For final expense policies with relatively modest face amounts, even a moderate loan can meaningfully reduce what your beneficiary receives.

Carriers charge interest on policy loans—rates are disclosed in your policy contract and are often lower than credit card or personal loan rates. Some carriers offer wash loans where the interest charged approximately equals the dividend or crediting rate, resulting in minimal net cost.

If you are considering accessing funds from your final expense policy, consult the carrier about current loan rates and the impact on your coverage before proceeding. Agents in our network can help you understand the trade-offs.