Loan Limits Overview
You can generally borrow up to about 90% of the available cash value in a Lincoln National life insurance policy, but the exact amount depends on the policy type, accumulated cash value, and any outstanding loans or fees.
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Key Factors That Determine the Available Loan Amount
Lincoln National calculates the loanable amount based on the policy's current cash surrender value. Whole life, universal life, and variable universal life policies each build cash value differently, so the loan ceiling varies.
- Cash surrender value: The higher the cash value, the larger the loan you can obtain.
- Policy type: Whole life policies often allow higher loan percentages than flexible universal policies.
- Outstanding loans and interest: Existing loans reduce the remaining borrowing capacity.
- Company guidelines: Lincoln National may impose a maximum loan‑to‑cash‑value ratio, typically 90% but sometimes lower for newer policies.
Typical Loan Ranges by Policy Type
| Policy Type | Typical Loan Ratio | Notes |
|---|---|---|
| Whole Life | 80‑90% of cash value | Stable cash growth allows higher borrowing. |
| Universal Life | 70‑85% of cash value | Flexible premiums can affect cash accumulation. |
| Variable Universal Life | 60‑80% of cash value | Investment performance influences cash value. |
How to Request a Loan
Contact Lincoln National's policy services department, provide your policy number, and specify the desired loan amount. The insurer will verify the cash value, apply any applicable fees, and disclose the interest rate, which is usually variable and tied to a benchmark index.
Implications of Borrowing
Borrowed amounts reduce the death benefit until the loan is repaid, and unpaid interest accrues, potentially causing the policy to lapse if the cash value falls below required levels. Consider the loan's purpose, repayment plan, and impact on long‑term coverage before proceeding.