Final answer:
Whole life insurance, along with universal and variable life insurance, allows for loans against the policy's cash value, but term life insurance does not.
Step-by-step explanation:
The life insurance policy that allows a policy-owner to take out a loan from the policy's cash value is whole life insurance. Other policies that offer this feature include universal life insurance and variable life insurance. These types of policies build a cash value over time, which the policy-owner can borrow against. Term life insurance, on the other hand, does not typically build cash value and therefore does not offer the ability to take out a loan against its value.