The policy loan provision means that?
Understand the Problem
The question is asking about the definition or implications of the policy loan provision in insurance, specifically what it allows the policyholder to do.
Answer
The policy owner can borrow any amount up to the cash value of the policy.
The final answer is the policy owner can borrow any amount up to the cash value of the policy.
Answer for screen readers
The final answer is the policy owner can borrow any amount up to the cash value of the policy.
More Information
A policy loan provision allows the policyholder to borrow against the cash value accumulated in a permanent life insurance policy, using this value as collateral.
Tips
Ensure you understand that the policy loan applies to permanent life insurance, not term policies.
Sources
- Loan on a Life Insurance Policy - Investopedia - investopedia.com
- Solved The policy loan provision means that:Multiple | Chegg.com - chegg.com
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