A policy loan made for the purpose of paying premiums.

In life insurance, a loan taken from the policy's cash value to pay the premium due. Many policies also have an "automatic premium loan", provision that is activated to pay overdue premium.

A loan made from an insurance policy to cover the premiums.

Many Cash Value Life Insurance Policies contain a provision by which an unpaid premium is automatically paid by borrowing the needed funds from the cash balance. This prevents the policy from lapsing.