Borrowing Against Whole Life Insurance at a Bank

bank collateralWe 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.

Nicholas Yevglevski
Kensington Financial Associates
2980 NE 207th Street, Suite 807
Personal AND “Direct to Business” loans
OK to use multiple policies for collateral
Aventura, FL 33180
(877) 298-7331
Kensington Informational Flyer

Brandon J Miller
Director – Life Equity Lending
M&M Bank
One Mid America Plaza
Suite 140
Oakbrook Terrace, IL 60181
(630) 575-9700 Loan Operations General
404.290.0050 (cell)
404.239.8664 (office)
M&M 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)

Shellee Spagnoletto
Ameris Bank
3490 Piedmont Road NE, Suite 700
Atlanta, GA 30305
Office (404)240-1528

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

And of course, you can also contact us directly to set an appointment to speak with Kim or to talk with Theresa, our multi-generational life insurance specialist.

If we can assist you with a new policy, please reach out to us at

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