Policy Loan
/ˈpɒlɪsi loʊn/
Definitions
- (n.) A loan made by a life insurance company to the policyholder, secured by the cash value of the insurance policy.
She took a policy loan against her whole life insurance policy to cover emergency expenses.
Forms
- policy loan
- policy loans
Related terms
See also
Commentary
Policy loans reduce the policy's death benefit and cash value if not repaid; drafters should clarify loan terms and effects on coverage.
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