A policy loan is made possible by which of these life insurance policy features?

A policy loan is made possible by the cash value provision of a life insurance policy. This feature applies specifically to whole life and certain other permanent life insurance policies that accumulate cash value over time. The cash value is a component of the policy that grows tax-deferred and can be accessed by the policyholder.

When a policyholder takes out a loan against their policy, they are essentially borrowing their own cash value. The insurer allows these loans but typically requires that the borrowed amount plus any accrued interest be repaid to maintain the policy in force and ensure that the death benefit remains intact. If the loan isn't repaid, the amount is subtracted from the death benefit when the policyholder passes away.

The other options relate to different aspects of life insurance but do not directly facilitate loans. The policy dividend provision relates to participating policies and may offer dividends based on the insurer’s performance. The premium waiver provision helps with premium payments in certain circumstances (like disability). The death benefit provision specifies the payout upon the insured's demise but does not provide for the borrowing of funds while the policy is active. Thus, the cash value provision is the correct feature enabling policy loans.