how soon can i borrow from my life insurance policy

Borrowing from a life insurance policy is generally possible only if you have a permanent life insurance policy (like whole life or universal life) that has built up cash value over time. You typically cannot borrow from term life insurance because it doesn't accrue cash value. How soon you can borrow depends on how quickly your policy accumulates enough cash value. Usually, it takes several years—often around 2 to 5 years or more—before enough cash value builds up to support a loan. Some policies may allow loans after 2 to 3 years, but this varies by insurer and policy terms. Once the cash value is sufficient, you can often borrow up to about 90% of the cash value. The loan process can take a few weeks from application to receiving funds. Loans do not require credit checks or income verification because your policy serves as collateral. However, unpaid loans reduce the death benefit payable to beneficiaries and may risk policy lapse if not managed carefully.