Owner/Insured

• Only the owner of the policy has the right to borrow money from the policy. If the insured isn't the owner, he can't take a loan against the policy or make any changes, such as a beneficiary change. If you own another person's insurance policy, you can borrow money from it by simply requesting a loan with the use of a loan form or, in certain cases, by telephone.
  
  

Levy

• If you owe money to the IRS and send an intent to levy, it can attach the cash value of your life insurance policy. However, other creditors can't attach life insurance cash value to satisfy a debt. Once you attempt to remove the funds, the creditors have the right to attach it.
  
  

Power of Attorney

• If you have the power of attorney for the owner of the policy, you can request a loan, but you must include a copy of the power of attorney papers with the loan form. When you sign, you must sign the person's name with your signature directly below his signature and the letters "POA" or words "power of attorney" following your name.
  
  

Spouse

• Even if you're the spouse of a person owning the life insurance policy, you can't take a loan against its cash value or use it as collateral. The cash value is the same as any other asset. If you don't own a house, you wouldn't expect to receive a loan using it as collateral; the same is true for a life insurance policy's cash value.