policy loan definition

policy loan

Loan obtained by a policyholder from an insurance company against the cash surrender value of a whole life insurance policy. If the policy holder dies before the full repayment of the loan, the loan balance is deducted from the death benefit.

policy loan is in the Accounting & Auditing, Banking, Commerce & Finance and General, Marine, & Life Insurance subjects.

policy loan appears in the definition of the following term: whole life insurance

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