Policy loan

(redirected from Life Insurance 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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See also: Not all life insurance loan provisions are created equal
22,2016: A jury trial regarding the John Hancock life insurance loan is set to begin, barring the fruition of any settlement talks.
Borrow from a home equity mortgage and use the proceeds to pay off the life insurance loan (assuming that payments on the home equity mortgage would be deductible).
Related: Not all life insurance loan provisions are created equal
In recent years, AMI has expanded its product line to include customized commercial financing solutions with fixed or floating rates, interim/bridge and construction loans, pool revolving credit lines, tax exempt credit enhancements, conduits, FHA/GNMA, and life insurance loan programs.
By working with LifeQuest World Fund, organizations can create an endowment program using funds generated by premium life insurance loans.

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