A bond that is backed by policyholder loans against life insurance policies. The underlying loans will be repaid either by the policyholder during his/ her life or from the proceeds of the insurance policy if the policyholder passes away. This bond is a special category of financial instruments or securities that combine plain vanilla bonds with life insurance. The bond give its holder protection against the probability of an early death in addition to the potential to make a return on the money invested.

It is also known as a policyholder loan bond.