Sometimes referred to as a "life insurance loan."
Traditionally, these were loans issued at a very low interest rate, but that is no longer universally true. If the borrower fails to repay the loan, the money is withdrawn from the insurance death benefit.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
policy loan — noun : a loan granted by the insurer to the holder of a life insurance policy in an amount no greater than the cash value of the policy * * * Insurance. a loan made by a life insurance company to a policyholder with the cash value of the policy… … Useful english dictionary
policy loan — Insurance. a loan made by a life insurance company to a policyholder with the cash value of the policy serving as security. * * * … Universalium
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. Bloomberg Financial Dictionary … Financial and business terms
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policy — pol‧i‧cy [ˈpɒlsi ǁ ˈpɑː ] noun plural policies 1. [countable] also inˈsurance ˌpolicy INSURANCE a contract with an insurance company, or an official written statement giving all the details of such a contract: • She did not realize that her… … Financial and business terms