If you have a cash value life insurance policy, you can borrow against it. This might be a source of cash to consider, if you have difficulty obtaining other types of loans.

Pros:

* You don’t have to fill out any lengthy forms, prove your income, or produce a high credit score.

* Interest rates are reasonable, compared with credit card debt. Today, you might be charged 5 percent-6 percent or so.

You don’t have to pay the interest that’s charged by the insurance company.

Cons:

* The amount your borrow, plus accrued interest, will be subtracted from the death benefit eventually paid to your heirs.

* If the loan balance grows so much that it exceeds your cash value, you will be asked to put more cash into the policy. If you don’t comply, the policy may lapse and you’ll owe a substantial amount of income tax.

* If you do pay the loan interest, those payments are not tax-deductible.

Therefore, you should borrow cautiously from your life insurance policy, and only if you’re willing to reduce the amount paid to your beneficiary at your death.