Policy loan

{
  "id": "MLC-T-INS-003716",
  "term": "Policy loan",
  "field": "Insurance and risk management",
  "definition": "A loan offered by a life insurance company to a policyholder, using the cash value of their permanent life insurance policy as collateral. The policyholder can borrow up to a certain percentage of the accumulated cash value, and the loan accrues interest. Unlike bank loans, policy loans do not require credit checks and are not repaid on a fixed schedule.",
  "url": "https://mlchart.com/terminology/insurance/policy-loan/"
}