Life Insurance Policy Loans2017-09-05T19:10:39+00:00

Many whole life insurance contracts build cash value. A valuable feature of a cash value life insurance policy is the ability to borrow from your policy’s cash value. However, taking out a policy loan can have a significant impact on your policy’s performance. In addition, any outstanding loan balance and interest will reduce proceeds paid to your beneficiary.

Complete a signed written request for a loan and mail or fax it to us.


  • The owner of the contract is the only one who can request a loan; there is no formal loan request form.
  • A written request is required. Please include the loan amount that you would like or call the Customer Service department at (800) 233-3750 ext. 503.
  • If you live in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin, the signatures of both you and your spouse are required except where one of the following items apply:
    1. You are submitting a copy of court documentation awarding you sole ownership of this asset with your request for a loan.
    2. You are submitting a copy of the death certificate in the event your spouse has passed away with your request for a loan.
    3. You have Power of Attorney (POA) for your spouse, and are submitting a copy of the POA appointment with your request for a loan.
    4. You will be indicating never married in lieu of where a spouse’s signature is required.
  • If your current beneficiary is irrevocable, their signature for authorization is required.
  • If your contract is collaterally assigned, the change must be authorized/requested by the assignee or the assignment released prior to the request for change.

Interest on your loan accrues daily and is billed annually until the loan is repaid. Unpaid interest is added to principal where it continues to accrue and compound. This may result in the loan exceeding the cash value of your policy. If this happens, outside funds may be needed to avoid contract termination and potentially adverse tax consequences.

Choose one:

Mail a check to the attention of the Customer Service Department. The check should be made out to Federal Life Insurance Company.

Call the Customer Service Department at (800) 233-3750 ext. 503 to request automatic monthly loan repayments from your checking account.

The amount you choose should be no less than $10 per month or the amount necessary to cover monthly interest charges on your loan; whichever is greater.

Contact Customer Service

Phone: (800) 233-3750
ext. 503

Fax: (847) 850-3304

Email Customer Service