Policy loan

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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References in periodicals archive ?
The World Bank has already disbursed $289 million in the July-January period but withheld $500 million policy loan.
On the macro front, as a result of weakening macroeconomic indicators World Bank has put a USD250mn policy loan on hold.
It added, We also assessed the conditions of our recently approved development policy loan and concluded that further progress is needed for the loan to be made effective.
section of the press on August 11, 2017 titled 'WB links loans to liberal foreign exchange policy' stating that the World Bank has declined government's request for a policy loan linking the lending support with the exchange rate adjustment.
Islamabad -- A section of the press on August 11, 2017 carried a news report titled *"WB links loans to liberal foreign exchange policy" *stating that the World Bank has declined Government's request for a policy loan linking the lending support with the exchange rate adjustment.
TAP) -- The World Bank Board of Directors approved on Tuesday the Business Environment and Entrepreneurship development policy loan worth US$500 million, to support the Tunisian government's continued efforts to promote stronger and more inclusive growth, and private sector jobs, especially for the youth, women and in less economically developed regions.
See Chapter 24 for a further discussion of deductibility of policy loan interest.
For his part, Fakhoury said his country is currently working with the World Bank on a second development policy loan at USD 250 million.
7 million policy loan at the insistence of Scooter Stuart.
The bulk of the funds ($167mn) will be a water sector policy loan while $43mn will be allocated to the projected Wadi Al Arab conveyer project in Irbid which is being co-financed by the European Investment Bank (EIB).
The total amount includes a water sector policy loan worth $167m, and a $43m loan for the projected Wadi Al Arab conveyer project in Irbid, to be co-financed by the European Investment Bank.
7 billion, of which US $ billion as a policy Loan Financing for Development (DPL) and $ 350 million for reconstruction and stability to the liberated areas from Daash and $ 350 million for the project of Umm Qasr -- Basra road.