A policy loan is a loan incurred when borrowing against the cash value of your life insurance policy.
With some insurance policies, if the policy has a cash value, the policyholder can borrow money from the policy.
A loan made by a life insurance company to a policyholder using the cash value of a policy as security. Outstanding loans are deducted from the face value amount upon death.
a loan secured against a life assurance policy
a viable way to get one's hands on some cash if unforeseen needs arise
Under an insurance policy, the amount that can be borrowed at a specified rate of interest from the issuing company by the policyholder, who uses the cash value of the policy as collateral for the loan. In the event the policyholder dies with the debt partially or fully unpaid, the insurance company deducts the amount borrowed, plus any accumulated interest, from the amount payable.
A loan made by an insurance company to a policyholder on the security of the cash value of the policy.
The amount a policyholder can borrow at a specified rate of interest from the issuing company, using the insurance policy's value as collateral. If the policyholder dies with the debt partially or fully unpaid, the insurance company deducts the amount borrowed, plus accumulated interest, from the amount payable to beneficiaries.
In life insurance, a loan made by the life insurance company to the policyowner, with the policy's cash value assigned as security.
A loan that is taken against a life insurance policy. The policy is secured by the net cash value of the policy. A policy loan can never be higher the net cash value. If the insured dies while there is an outstanding loan, then the loan will be subtracted from the death benefit payable.
Funds borrowed from the cash value of a life insurance company
Once the policy or any related policies had acquired an Encashment Value, the Policy Owner can apply a loan on the security of the policy and any related policies for an amount not exceeding 60% of the Encashment Value.
An advance made by a life insurance company to a policy owner. The advance is secured by the cash value of the policy.
Under some life insurance policies, if a person has enough Cash Value, he/she can borrow money from his/her own policy.
Loan made by a life insurance company to the owner of a cash value policy. The cash value serves as collateral for the loan, which is made from the company's funds. If a policyholder dies while the loan is outstanding, the amount of the loan plus any unpaid interest is deducted from the policy's face amount in order to reimburse the company for the loan.
A non-recourse loan from the insurer to the policyowner secured by the policy's cash value.
A loan made by the insurer to the owner of a life insurance policy, using its surrender value as collateral.
Policyholder Policyholder loan bonds
A loan made by a life insurance company to a policyholder on the security of the cash value of a policy.
A loan that you can take against the value of the policy. Taking out loans normally reduces the benefit (money) received by your beneficiary.
A life insurance policy nonforfeiture benefit, whereby the insured may borrow from or take a loan from the insurer based on the cash surrender value of the policy.
A loan that an insurer makes to the owner of a permanent life insurance policy that is secured by the policy's cash value. When the policy's benefits are paid, the amount of any outstanding loan is deducted from the policy benefits.
A loan that an insurer makes to the owner of a life insurance or annuity policy and that is secured by the policy's cash (accumulated) value.
A loan made by an insurer to a policy owner of a part or all of the cash value of the policy assigned as security for the loan. This is one of the usual nonforfeiture values.
A loan from a life insurer to the owner of a policy that has a cash value.
A loan on the security of a long-term life assurance.
The amount that the owner of a life insurance policy can borrow, at an interest rate set by the company, from the insurer up to the cash surrender value. If interest is not paid when due it is deducted from any remaining cash value. At the death of the policyholder any outstanding policy loans and interest due are subtracted from the death benefit.
The borrowing against a life insurance policy's cash value.
A loan made by an insurance company, secured by the cash surrender value of a life insurance policy.
A loan that is made to a life insurance policyowner by an insurer. A policy loan is secured by a policy's cash value and cannot exceed the cash value. When the policy benefits are paid, the amount of any outstanding policy loan made against the policy is deducted from the benefits.