It's true. There is also this kind of loan. This is an unsecured loan. Pay the premium more than 3 times a year. This kind of loan means that the bank has risks. If you don't repay the loan, the bank will have bad debts.

Policy loan:

Also known as policy pledge loan, it is a loan that the policy holder obtains from the insurance company with the policy as collateral. Policy holders can get policy loans because their policies have cash value. With the implementation of the balanced premium system, the premiums paid by the insured in whole life insurance at the initial stage of the policy are higher than their current expenditures, thus forming a certain cash value through year-on-year accumulation.

When obtaining a policy loan, the policy holder does not promise to repay the loan principal and interest, because the funds obtained by the policy holder come from the cash value of his policy, that is, a part of the funds that the insurance company must pay him in the future, and the policy loan enables the policy holder to advance this part of the funds.