What insurance feature allows an insured to borrow against the cash value of their policy?

The feature that allows an insured to borrow against the cash value of their policy is known as a policy loan. This option is available in permanent life insurance policies, where a portion of the premiums paid accumulates as cash value over time.

When the insured takes out a policy loan, they can access this cash value without having to surrender the policy or lose coverage. The loan amount is typically limited to a percentage of the cash value, and while the loan itself does not require repayment in a traditional sense, any outstanding amount will reduce the death benefit that beneficiaries receive at the time of the insured's death.

Additionally, policy loans can be an advantageous financial tool for policyholders who might need funds in an emergency or for other expenses while maintaining their life insurance coverage.

In contrast, options such as the waiver of premium involve provisions for premium payments to be waived under specific circumstances, the cash surrender value refers to the amount an insured could receive if they decided to cancel the policy altogether, and accelerated death benefits allow for early access to death benefits under certain conditions, but none of these options provide the ability to borrow against the cash value directly like a policy loan does.