Any existing loans against your permanent life insurance policy will decrease the amount of the payout to the beneficiary at time of death of the insured. (term-life-online.com)
Death benefit A death benefit is the amount paid to the beneficiary at the time of the death of the insured. (metlife.com)
And, while these funds are not required to be paid back, it is important to note that any amount that is not repaid to the policy will be counted against the death benefit that is paid out to the policy's beneficiary at the time of the death of the insured. (insurancescored.com)