Life insurance companies risk disintermediation when interest rates are high because investors will withdraw their funds to take advantage of the higher rates. This concept makes sense … but when I think of loan products I don’t immediately think of insurance companies … do they take deposits or something?
Edited: Looked it up. Policy loans provisions can trigger a need for greater liquidity. Policy loan rates are generally low, which allows investors to take advantage of higher rates (borrow low / lend high).
Policy Loan - A loan issued by an insurance company that uses the cash value of a person’s life insurance policy as collateral.