Policy loan refers to an insurance clause agreed by the insured and the insurance company. When in urgent need of funds, the insured can use the long-term life insurance policy as collateral to apply for loans from the insurance company, which will provide loans to the insured within the cash value of the policy.

The insurances that can handle policy loans include: endowment insurance, whole life insurance, endowment insurance, universal insurance, dividend insurance and other long-term life insurance with savings nature. After one year of insurance, the policy begins to have cash value. The longer the payment time, the higher the accumulated cash value. Policy loans can usually be made.

Only policies with cash value can provide policy loans. Long-term life insurance with saving nature, such as endowment insurance, whole life insurance, endowment insurance, universal insurance, dividend insurance, etc., can make policy loans after one year of insurance, but the specific situation depends on the specific terms in the insurance contract.

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. Investment-linked insurance cannot be used for policy loans, because although investment-linked insurance has cash value, it cannot be used for policy loans because its value fluctuates with the price of the investment unit and cannot be determined. Usually, you can only apply after the policy is valid for one year. In addition, some insurance companies stipulate that policy loans cannot be provided if the policy is paid in advance or the investment policy is delayed.