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.

Mentioned in

Participating policy

References in periodicals archive

It is worth mentioning here that ADB had policy loan for Pakistan after approval of IMF programme.

Foreign exchange reserves increase to $15.58 billion

This is done by tapping into the cash value of the policy such as by availing of a policy loan. A life insurance builds up a cash value that accumulates over time.

Living benefits of life insurance

World Bank documents showed the Washington-based multilateral lender's board was expected to tackle in November the proposed Promoting Competitiveness and Enhancing Resilience to Natural Disasters Development Policy Loan, which, if approved, would be implemented by the Department of Finance.

PH seeks $400-M World Bank loan to bolster disaster defense

"As stated by PLIA, taking out a policy loan may or may not reflect a need for cash by the policyholder.

Insurance Commission lauds court ruling vs credit bureau submission

His Majesty and Prime Minister Abe witnessed the signing of an agreement for a $300 million development policy loan presented by the Japanese government over three years to support Jordan's budget.

King returns home after Japan visit

On the macro front, as a result of weakening macroeconomic indicators World Bank has put a USD250mn policy loan on hold.

Stock market at a glance

10/2018 to fund the Third Financial Sector Development Policy Loan so as to back sustainable energy and competitiveness.

Parl't approves World Bank loan agreement

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.

Government, WB dialogue on policy based lending continues

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.

Clarification

For his part, Fakhoury said his country is currently working with the World Bank on a second development policy loan at USD 250 million.

World Bank approves USD 100 mln soft loan for Jordan