Blocked insurance

[marvan]

Hello teachers,

could you please explain to me what the sentence below means:

"The capital can be paid into a blocked insurance policy."

What does exactly BLOCKED INSURANCE stand for?

Thank you very much!

[Soup]

Does this help?

The term blocked life insurance policy shall mean any life

insurance policy or annuity contract, or contract supplementary thereto,

in which there is a blocked interest.

(2) Any interest of a national of a designated foreign country shall

be deemed to be a ``blocked interest.''

(3) The term servicing shall mean the following transactions with

respect to any blocked life insurance policy:

(i) The payment of premiums, the payment of loan interest, and the

repayment of policy loans;

(ii) The effecting by a life insurance company or other insurer of

loans to an insured;

(iii) The effecting on behalf of an insured of surrenders,

conversions, modifications, and reinstatements; and

(iv) The exercise or election by an insured of non-forfeiture

options, optional modes of settlement, optional disposition of

dividends, and other policy options and privileges not involving payment by the insurer.

Section

[marvan]

Yes thank you!

However, I have been searching for a specific term in English which should mean that when applying for a loan, as a guarantee you can use your life insurance policy that has to be "blocked?" in favour of the bank in case you are not able to pay.

Can I say it like that?