The policy loan clause is one of the common clauses in life insurance. After the life insurance contract comes into effect for a certain period of time, the insured can apply for a loan from the insurer with the policy as collateral, and the loan amount is generally lower than the accumulated liability reserve or surrender premium under the policy. The loan interest rate generally refers to the market interest rate. The insured shall repay the loan on schedule and pay interest. In case of insurance accident or surrender before repayment of the loan principal and interest, the insurer will deduct the loan principal and interest from the insurance premium or surrender premium. When the loan principal and interest reach the amount of liability reserve or surrender premium, the insurance contract is terminated. Policy loan terms are generally optional terms, which are more common in old-age security contracts or whole life insurance contracts.