The payments you make against your life insurance policy are different from the payments you make for the loan you obtained on it. However, regular payments are expected in each case. Your insurance company never intervenes in this matter as long as you make regular payments as part of your policy premiums. It is your liability to make payments for your loan on time to avoid any complications. Supposing that you default paying for the loan, then the same amount will be deducted from your policy value. This will make it difficult for you as the value of the policy subsides making it less valuable than the actual premiums you are paying. Eventually, this leads in the lapsing your policy. It will be of no use later even if you reinstate it as the interest gets accumulated making it even more difficult for you to pay. To make things simpler for you, avail a loan on your life insurance policy taking your repayment capacity into consideration.