Life insurance loan help

I’m looking to take a whole life insurance loan. I’m trying to determine the ramifications of the language the insurance company is using.

The initial paperwork stated:

“Each undersigned acknowledges receipt of this loan made under the terms of the above numbered policy, and hereby assigns said policy to ____________ Company as security for said loan in full, which shall bear interest from its date at the rate provided in said policy.”

I received the check which indicated:

“Authorizes the policy loan in the amount of this check. Agrees that said policy loan shall be subject to the provisions of the policy, Assigns his/her policy to _________ as security for said loan and requests the company waive any provision of the policy, requiring its return as a condition to the granting of this policy loan.”

The insurance company says that as long as my premiums and the interest are paid up to date that my policy will continue to be in effect and that in the event something happens to me just the loan amount will be deducted from the payout. Is this the case if I assign the policy to them? Thanks

I haven’t taken the loan until I cash the check.

submitted by /u/Slight-Leadership663
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