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Policy Loan

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Policy loan
A loan often made at a below-market interest rate from an insurance company to a policyholder that is secured by the cash surrender value of a life insurance policy.

Policy Loan
A loan that an insurance company extends to a policyholder with the cash surrender value of the policy as collateral. That is, if the policyholder does not repay the loan, the insurance company may take an equivalent amount out of the policyholder's death benefit. The nature of collateral has historically meant that policy loans carry low interest rates, but this is not always true. It is also called a life insurance loan.


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Byline: Daily Star Staff Summary: The World Bank has approved a $300 million Development Policy Loan (DPL) to Jordan to support the Government's medium-term development program in the context of the current global economic crisis.
A second development policy loan will be considered by the World Bank in six to seven months time and this, too, would be disbursed in a single tranche.
AaAa The WB Household Waste Development Policy Loan supports the sector governance through legal, regulatory and institutional measures, the sustainability of municipal waste management services, and the mainstreaming of social and environmental considerations.
 
 
 
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