No Restrictions on Use
A Kensington policy loan puts your own cash value to work — without surrendering your coverage. Use the funds for whatever matters most to you.
Real Estate Investing
Most PopularReal estate opportunities don't wait for bank timelines. A policy loan gives you fast access to capital — often in weeks rather than months — so you can move on deals when they appear.
- →Down payments on investment properties
- →Bridge financing between deals
- →Renovation capital on acquired properties
- →Earnest money deposits without liquidating other holdings
Context
Traditional bank financing for investment properties can take 30–60 days and requires extensive documentation. Policy loans require neither your income statement nor a new lien on the property.
Paying Off High-Interest Debt
High ImpactCredit card interest rates now average close to 28% APR. Personal loan rates can exceed 20%. If you're carrying high-interest debt, using your policy's cash value to pay it off may cost you far less in interest over time.
- →Credit card balances (avg. ~28% APR)
- →Personal loans
- →High-rate auto financing
- →Any revolving debt costing you double digits
- →Purchasing an additional policy or paying off higher-interest policy loans
Context
The interest you pay on a policy loan is disclosed in your term sheet and is based on the 30-Day SOFR plus an applicable margin — significantly lower than consumer credit card rates.
Business Capital
Business lending from banks is notoriously documentation-heavy — financial statements, tax returns, personal guarantees, and often a lien on business assets. A policy loan requires none of that.
- →Inventory financing
- →Operating capital during slow seasons
- →Equipment or technology purchases
- →Business acquisition or expansion
- →Payroll bridge during a growth phase
Context
Kensington supports individual, trust, and business-owned policy borrowers. No personal guarantee required, and no impact on your business credit.
Auto Loans
Auto financing rates have climbed sharply. If you're looking to buy a vehicle without taking on a high-rate auto loan, your whole life insurance policy may be a more efficient source of capital.
- →Purchase a vehicle outright — no dealer financing
- →Pay off an existing high-rate auto loan
- →Fund a vehicle for personal or business use
Context
Auto loans currently average 7–10%+ for used vehicles. A policy loan gives you the flexibility of an unsecured advance without a lien on the car itself.
Student Loans & Education
Federal and private student loan rates have risen significantly. For families with existing life insurance cash value, a policy loan can fund education expenses or help pay down existing student debt.
- →Tuition or living expenses for yourself or a dependent
- →Refinancing or paying off existing student loans
- →Graduate or professional school costs
Context
Unlike parent PLUS loans or private student loans, policy loans have no origination fees, no income requirements, and no impact on your credit report.
Medical Expenses
Medical bills arrive without warning and often with urgency. A policy loan can be set up quickly — in weeks, not months — and funds can be used for any medical need without restriction.
- →Out-of-pocket surgery or procedure costs
- →Long-term care or rehabilitation expenses
- →Covering a deductible or out-of-network cost
- →Helping a family member with medical bills
Context
Medical financing often comes with high promotional rates that reset to 26%+. A policy loan offers a more predictable, often lower-cost alternative.
Eligibility Questions
Are there any restrictions on how I use the funds?▾
Can I use multiple policies to reach a higher loan amount?▾
What is the minimum loan amount?▾
Can a business borrow against its owners' whole life insurance policies?▾
Know What You Would Use It For?
Start your application or call us to discuss your specific situation. We'll tell you what your policy qualifies for at no cost.