Which value in a Whole life policy is available for borrowing against?

• A. The policy loan value
• B. Cash surrender value
• C. Dividend value
• D. Face amount

Answer: (A)

In a Whole Life policy, the amount you can borrow against is the policy loan value. This is based on the policy’s cash value and represents the loan you may take using that cash value as collateral. It’s not the cash surrender value (what you’d receive if you surrendered the policy), nor the dividend value (dividends are not guaranteed borrowing funds and depend on the insurer and policy type), nor the face amount (the death benefit). When you borrow, the loan reduces both the cash value and the death benefit by the loan balance plus interest until repaid.