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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Participating policy

References in periodicals archive ?

By expanding policy loans, the FSC said it will help speed up restructuring of the corporate sector and create some 170,000 jobs.

Seoul to infuse W100 trillion to innovative firms

(CIC) requiring insurers to submit the premium payments, insurance contracts and policy loans of its clients.

IC hails ruling vs CIC demand for data on policy loans

Notably, the CIC cannot rely on the foregoing exemption under the Data Privacy Act applicable because policy loans, premium payments and insurance contracts do not constitute basic credit data,' it added.

Court nullifies CIC circular on insurers

2017-04 requiring insurers to submit the premium payments, insurance contracts and policy loans of their clients.

Insurance Commission lauds court ruling vs credit bureau submission

These lenders are not giving policy loans to Pakistan due to the absence of a Letter of Comfort from the IMF.

Foreign loan disbursements drop to $2.2b in first half of FY19

Subject to overall macroeconomic stability, the policy loans will be given for energy-sector reforms, improving trade and competitiveness and financial market development.

ADB sets $7.5 billion lending programme for Pakistan

The decision to cancel policy loans came following postponement of visit of a World Bank team to Pakistan.

External balance

ISLAMABAD -- A report prepared by the Independent Evaluation Group (IEG), an arm of the World Bank (WB) has said two policy loans worth $900 million given to Pakistan failed to achieve their stated objective of stimulating economic growth.

Government failed to decrease trade tariff and exemptions: IEG

The World Bank and the Asian Development Bank (ADB) have already withheld $700mn as balance of payments' policy loans due to deterioration in macroeconomic indicators in the past one year.

Pakistan in talks with China bank to secure $1bn loan

Sources in the finance ministry said that the World Bank's policy loans were now contingent upon a good health certificate from the International Monetary Fund (IMF).

World bank puts $250mn policy loan for Pakistan on hold

While life insurance policy loans and death proceeds are generally received income-tax free, the same favorable tax treatment does not necessarily apply upon sale or surrender of a policy.