This is a great question. We need to keep in mind that this is a loan and the insurance company charges interest. With that said, a policy loan can be paid in full or in part at any time. If no payments are made when one is alive, then at death the balance of the loan will be deducted from what is paid to those who were named as the beneficiaries. It is important to note that when repaying a policy loan to indicate that the payment is for repayment of the loan, otherwise it could be treated as a premium payment. Is is always wise to consult with the insurance agent about the specific insurance company's repayment requirements.