Loans A policy owner can request a loan from the insurance company, based on a percentage of the life insurance surrender value. The policy itself is used as a guarantee, so the insurer cannot reject this loan request. Interest is charged based on the terms and conditions on each insurance policy or agreement. Interest rates are subject to prevailing market conditions. If the loan balance is not paid by the insured, this amount will be deducted from the policy account value, or benefits, in case of death.