Life Insurance as Financing?

[Josh Calcanis]

BP,

I was speaking with a friend of mine who recently began working for a financial group. She mentioned that she had a few clients that had use their overfunded life insurance policy as financing for a deal. Basically, it's a conventional loan with a lender, but they use the policy as collateral.

She wasn't too familiar with the matter and was going to try to dig up some answers. To be fair, she just started and wants me to begin working through her (purchase life insurance).

I wanted to see if anyone on here is familiar with a strategy like this. What are the pros and cons to something like this? Is this even possible?