Who is the only person who can take loans out on a cash value life insurance policy?

The insured is the person whose life is covered by the policy, but this individual does not hold ownership rights over the policy. Therefore, the insured cannot take loans against the cash value unless they are also the policyowner. Their role is primarily to provide the basis for the insurance coverage rather than manage the policy's financial aspects.

The beneficiary is the person designated to receive the death benefit upon the death of the insured. While they may have a financial interest in the policy, they do not have the authority to access or borrow against the cash value during the policyowner's lifetime. Their rights are limited to the proceeds from the policy in the event of the insured's death.

The insurance company issues the policy and manages its terms, but it does not take loans against a cash value policy. Instead, it provides loans to the policyowner based on the cash value. The insurer's role is to facilitate the policy’s benefits and manage risk, not to engage in borrowing from the policy itself.