Insurance
Policy Loan Issued to Policyholder
Lending a policyholder up to 80% of their life insurance policy's cash surrender value.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Policy Loans Receivable | Asset (+) | 10,000.00 | - |
| Cash / Policy Cash Value (Reduced) | Asset (-) | - | 10,000.00 |
💡 Accountant's Note
Policy loans are unique to life insurance. The policyholder borrows against their own accumulated cash value. If not repaid, the loan (plus interest) is deducted from the death benefit or surrender value.
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