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| What is a Policy Loan?
Policy Loan means that an insurance company gives a loan to a customer with very low interest rates. This loans is for a life insurance. The backside is that if the customer doesn't pay then the money will be extracted from the policy and the life insurance will be canceled.
For example you make a life insurance policy for an X sum of money and you take a loan out from the insurance company to pay the life insurance. The interest rate would be bellow market standards. And if you default on your payments then the life insurance will be terminated and the money extracted from that account. | | | | |
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