Loans on policy are loans made by insurance companies to its policy holders using their policies as collateral.

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Loans on policy are also known as policy loans and are commonly offered by life insurance companies. The policy holder borrows money and uses their insurance policy as collateral for the loan. The amount of the loan is typically a percentage of the cash value of the policy. The loan, plus interest, must be paid back to the insurance company, and if it is not repaid, the policy's death benefit will be reduced by the outstanding loan amount.

Loans on Policy Are Loans Made by Insurance Companies to Its