Thank you for using JA. Yes, there is no legal prohibition that would prevent you from borrowing money against the value of the policy. The only problem would be in finding a lender that would allow you to use the policy as collateral for a loan.
Although it might not be a preferable option, if the policy has a cash value, you could always consider cashing it in or selling the policy to a buyer. There are companies who invest in paid up insurance policies and buy them for a discounted value based on the owner's life expectancy. This can allow the owner to essentially cash out the policy and receive a portion of the face value of the policy to use currently and then the buyer would be paid upon the seller's death.
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I am trying to help you understand and resolve your situation but I don't make the laws, so the outcome may not be what you had hoped for.
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