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.
Mentioned in ?
References in periodicals archive ?
22,2016: A jury trial regarding the John Hancock life insurance loan is set to begin, barring the fruition of any settlement talks.
Total direct floating rate debt outstanding when the Principal Mutual Life Insurance loan closes will represent only 7% of total market capitalization.
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.
Consumers can use life insurance loans to finance major items, such as auto purchases, college educations and weddings for their children, and business owners can turn to life insurance loans to finance equipment purchases and to expand facilities.
By working with LifeQuest World Fund, organizations can create an endowment program using funds generated by premium life insurance loans.
18 /PRNewswire/ -- The National Association of Life Underwriters (NALU) said today it will actively oppose a proposal now before the House Ways and Means Committee to retroactively tax business life insurance loans.

Full browser ?