A Policy Loan allows you to borrow against the cash value of your life insurance policy, often with favorable terms and interest rates. Because the loan is based on your policy’s own funds, it doesn’t require credit checks or approval.
While it can be a convenient way to access funds, any unpaid loan balance reduces the death benefit paid to beneficiaries. Policy loans offer flexibility for accessing cash without needing to surrender the policy, but responsible management is important to avoid affecting coverage.