Policy loan refers to a loan method in which the insured mortgages the policy he holds to the insurance company and obtains funds according to a certain proportion of the cash value of the policy. Since the customer's insurance protection is not affected in the process of pledge loan, the policy is still valid. Generally, long-term life insurance or life insurance has a certain cash value after the payment has successfully passed the policy hesitation period, and financial insurance is a new type of life insurance, and the policy has a cash value.

Generally speaking, the maximum amount of policy loans is generally 70%-80% of the cash value, and the longest loan period is half a year. When the loan expires, the applicant needs to repay the principal and interest to the insurance company in one lump sum.

Short-term accident insurance and health insurance, because there is no cash value, or the cash value is very low, such policies can not be used for policy loans. Although cash value is an important factor in evaluating whether a policy can be loaned, it is not only the policy with high cash value that can be loaned. The most typical example is investment-linked insurance (also a kind of financial insurance, which is rarely sold in China at present).

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