Loans on policies are valuable to the policyholders, and insurers encourage them to protect this...

The insured makes a request for a loan. Since an emergency may very well have triggered this request, most companies will accept any form of notice such as a telephone call

The maximum loan amount is frequently limited to the cash value of the policy plus the value of paid-up additions

an insured has indicated in the insurance application that the policy is not to lapse for nonpayment of premiums so long as there is loan value adequate to cover unpaid premiums

Loan can be created to pay policy loan interest if the policyholder-borrower does not pay it in cash