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LSDefine

Simple English definitions for legal terms

policy loan

Read a random definition: feudist

A quick definition of policy loan:

A policy loan is when an insurance company lends money to someone who has a policy with them. The loan is secured by the cash reserve in the policy. This means that the person can borrow money from the insurance company and use their policy as collateral. They will have to pay back the loan with interest, but it can be a good option if they need money quickly.

A more thorough explanation:

A policy loan is a loan given by an insurance company to a policyholder, using the policy's cash reserve as collateral. This means that the policyholder can borrow money from the insurance company and use their policy as security for the loan.

For example, if John has a life insurance policy with a cash value of $10,000, he can borrow up to that amount from the insurance company. The loan will accrue interest, which John will need to pay back along with the principal amount borrowed.

Another example is if Sarah has a whole life insurance policy with a cash value of $50,000. She can take out a policy loan of $20,000 to pay for a home renovation. The loan will be charged interest, which Sarah will need to pay back to the insurance company.

Policy loans are a way for policyholders to access the cash value of their life insurance policies without surrendering the policy. However, if the policyholder does not pay back the loan with interest, the outstanding balance will be deducted from the death benefit paid to the beneficiary upon the policyholder's death.

policy limits | policy of insurance

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shaquilleoatmeal
16:04
appreciate the non wink since you didn't appreciate it them then lol
babycat
16:06
I'll do it for you ;)
16:06
Tough to justify attending a law school where the admissions office does epic resistance political commentary at the info session
BulbasaurNoLikeCardio
16:07
making me feel jealous here wow, I am about to go taste test a bunch of deserts for our baby shower this weekend.
BulbasaurNoLikeCardio
16:07
@milktoast: what school got political at an info session?
shaquilleoatmeal
16:11
nothin to be jealous about, i've been trying to slide into babycats dms but shes got a long line I guess I gotta wait in to see if I can get in lmao
babycat
16:11
omg if you get into ASU they give you travel expense reimbursement to go there for a visit. does anyone know which other schools do this? I'd love to get a comped vacation
shaquilleoatmeal
16:12
think BU gives you $300 or somethin
ClassyPleasantHeron
16:12
Where is ASU getting this kind of $$$ from? They waive CAS fees too.
babycat
16:13
@shaquilleoatmeal: yeah but then you have to go to Boston :(
shaquilleoatmeal
16:14
uva too
shaquilleoatmeal
16:14
whats wrong w boston ;(
GOT PROMOTED YAY how do i tell law schools abt this?
like do i type up and separate doc and send as an attachment? how much do i write?
shaquilleoatmeal
16:15
@jackfrost11770: LFGGGG
TYYYYYY
shaquilleoatmeal
16:16
do any of your schools have updated sections in the portal? If so, i'd upload there, if not email. Small paragraph should do it id think
1a2b3c4d26z
16:16
Who wanna play some operation metro later on
1a2b3c4d26z
16:16
Congrats jack!
thank you!!
babycat
16:16
@jackfrost11770: personally I would submit an updated resume reflecting the new position instead of a paragraph but idk what SOP is
getting a bacon egg and cheese in celebration
1a2b3c4d26z
16:18
lfg baby you earned that
babycat
16:20
also congrats!! big win
initiallaw
16:23
congrats!!
:D
the big W is that i get reimbursed for travel now thank GOD
jack moving up in the world :)
i have a brother named jack, so whenever i see your name im marginally happier than normal
babycat
16:37
I'm guessing you don't have a sibling named babycat but I hope I still make you marginally happier than normal despite this
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