What is a

Private Policy Loan?

The Private Policy Loan uses only the policy’s death benefit as collateral instead of buying the policy. The Policy Owner pledges no assets and has no out-of-pocket expenses or requirement to repay the Loan. As a result, this is legally described as a “Non-Recourse Loan.” If the Insured dies during the Loan Term, the beneficiary receives the net benefit after the Lender deducts loan principal, premiums paid, interest, and fees. If the Insured outlives the Loan Term, the Policy Owner signs over the remaining benefit to the Lender, which cancels the Loan.