What does Policy Loan mean? Read on to discover the definition & meaning of the term Policy Loan - to help you better understand the language used in insurance policies.
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.
We hope the you have a better understanding of the meaning of Policy Loan.