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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According to the bank, the loan is the first of two development policy loans, which is grounded in the development of goals for Turkey.
Index UL, for example, provides a death benefit for heirs that is generally income tax-free, and with sufficient policy values, clients can take policy loans and withdrawals to supplement their income.
The bank said that the loan is the first in a series of two development policy loans (DPLs) that would help Poland strengthen public finances.
Details : The World Bank has approved two development policy loans of MAD 2.
Summary: The World Bank's board of directors approved, on Tuesday, two development policy loans (DPL) in the amount of 352 million dollars for Morocco, Bretton Woods announced.
Summary: Washington - The World Bank's board of directors approved, on Tuesday, two development policy loans (DPL) in the amount of 352 million dollars for Morocco, Bretton Woods announced.
A portion of the policy's surrender value may be available as a source of supplemental retirement income through policy loans and withdrawals.
Previous research has examined the demand for life insurance policy loans using aggregate policy loan data.
The ADBC is one of China's three policy banks, in charge of providing agriculture-related policy loans.
The increase has been attributed to the Development Policy Loans received from the World Bank in April and June 2009, the central bank said.
In other words, policy loans work a bit like reverse mortgages.
Policy loans are available and serve to give the contract holder leverage, Pinkans said.