Total Outstanding Policy Loan Balances
$151 B
Q4 2025
Source: Federal Reserve Z.1 Financial Accounts (BOGZ1FL543069405Q) · ACLI Life Insurers Fact Book 2025 · Life insurance companies, policy loans, asset level, 1945–2025
Households Holding Policy Loans
~3.5M
2025 (est.)
Source: Estimated from Federal Reserve Survey of Consumer Finances cash-value policy ownership rates & ACLI household ownership data · Households with an outstanding loan against a cash-value life insurance policy, 1960–2025
Average Policy Loan Balance per Household
$42,637
2025 (est.)
Source: Computed from total outstanding policy loans (Fed Z.1) ÷ estimated number of households with policy loans · 1960–2025
Policy Loans as % of Life Insurance Reserves
5.6%
Q3 2025
Source: Computed from Fed Z.1 policy loans (BOGZ1FL543069405Q) ÷ life insurance reserves (BOGZ1FL543140005Q) · 1952–2025
Average Policy Loan Interest Rate
~6.0%
2025 (est.)
Source: Estimated from NAIC Model Policy Loan Interest Rate Bill, carrier disclosures, and industry surveys · Weighted average of fixed-rate (5–8%) and variable-rate policy loans, 1960–2025
Key Data
Summary metrics on U.S. life insurance policy loans, balances, utilization, and interest rates.
| Metric | Value | Period | Source |
|---|---|---|---|
| Total outstanding policy loans | $151 billion | Q4 2025 | Federal Reserve Z.1 |
| Policy loans as % of insurer assets | 1.6% | 2024 | ACLI Fact Book 2025 |
| Policy loans as % of life insurance reserves | 5.6% | Q3 2025 | Federal Reserve Z.1 |
| Estimated households with policy loans | ~3.5 million | 2025 (est.) | SCF / ACLI |
| Average policy loan balance | ~$42,600 | 2025 (est.) | Computed |
| Households with cash-value policies | 16.9% | 2022 | ACLI / LIMRA |
| Year-over-year growth (2023–2024) | 6.3% | 2024 | ACLI Fact Book 2025 |
| Typical fixed policy loan rate | 5–8% | 2025 | NAIC / carrier disclosures |
| Max borrowable against cash value | ~90% | 2025 | Industry standard |
| Peak loan-to-reserve ratio | 24.9% | 1980 | Federal Reserve Z.1 |