Use the asset you already own.
If you have a whole life, universal life, IUL, or VUL policy, you can borrow against the cash value at 5–8% APR. No credit check. No agent involvement. About a week to fund.
Policy explorer
See what your policy can do.
Four quick inputs. Estimated borrowing power, rate, and impact — all in one place.
Your policy
About three minutes.
Showing illustrative numbers. Add your carrier and policy type for a more specific estimate.
What you can borrow
$25,500
About 85–90% of cash value, typical across carriers. You’ve set the slider to borrow $15,000.
Your specific limit depends on carrier and policy type.
What it costs
- Estimated APR
- 7%
- Monthly interest
- $88
- Annual interest
- $1,050
Pick your carrier above for a Direct Recognition–adjusted estimate.
What changes
- Death benefit reduction
- $15,000
- Cash value tied up
- $15,000
- Loan-to-cash-value
- 50%
Premium continues. Pay interest at least annually and the death benefit returns to full when repaid.
How it works
Three steps. About a week.
We pull your carrier's terms
Your specific carrier's policy loan terms — stated rate, effective cost with Direct Recognition where it applies, and your available loan amount.
We compare it to Cove's rate
Same policy, same collateral — but we lend from our own balance sheet, so the carrier doesn't reduce your dividend.
You pick the cheaper one
We initiate the loan and it's funded in about a week. Your agent isn't involved unless you tell them.
What major carriers charge
We list rates we can verify.
Carriers don’t usually surface this publicly. We do.
| Carrier | Status | Stated rate | Effective (with DR) |
|---|---|---|---|
| Northwestern Mutual (WL) | DR | 5.0% | ~7.0–8.0% |
| MassMutual (WL fixed) | DR | 8.0% | 8.0% |
| MassMutual (WL adjustable) | NDR | 5.14–5.81% | same as stated |
| Penn Mutual (WL) | DR, year-11+ offset | 6.20% | ~6.2% (years 1–10) |
| Guardian (WL) | DR | ~8.0% | 8.0% |
| New York Life (WL) | NDR | 5.33% (variable) | same as stated |
Source citations at trycove.co/sources.
What you don’t see in marketing.
Lapse risk. If you stop paying interest, it accrues against the cash value. If the cash value drops below the loan balance, the policy can lapse — and a lapse with a loan outstanding triggers a taxable event on accumulated gains. Avoidable with annual interest payments, but worth taking seriously.
Death benefit reduction. While the loan is outstanding, the death benefit is reduced by the loan balance. Repay the loan, the death benefit returns to full.
Direct Recognition dividend impact. On most whole life policies, the carrier reduces the dividend on the loaned portion of cash value. This is what makes Cove’s direct-lending model worth 1–1.5% per year on DR carriers. On NDR carriers, the savings are minimal — we say so out loud.
FAQ
Questions, answered.
Check your exact rate.
We’ll pull your carrier’s specific terms. About three minutes.
TODO · Tally form
Create the rate-inquiry form at tally.so, then set NEXT_PUBLIC_TALLY_FORM_ID.
Hidden fields will carry entry=cove-policy + UTM params. No placeholder handler is wired — the form ships when the ID is set.