What is Policy Loan? | LIFE-HEALTH Exam Prep

A policy loan is a loan from an insurance company using the cash value of a permanent life insurance policy as collateral, which does not require credit approval and charges interest that accrues if unpaid. 📚 Learn more about Policy Loan and other key terms for your LIFE-HEALTH exam at Open Exam Prep. 🎯 This term appears on: LIFE-HEALTH 🔗 Full glossary: https://www.open-exam-prep.com/glossary 🔗 Policy Loan definition: https://www.open-exam-prep.com/glossary/policy-loan 💡 Exam Tip: Policy loans are NOT taxable when taken. If policy lapses with outstanding loan, there may be tax consequences. --- #insurance #examprep #financeexam #life-health