Interest

aboutfixedloan

All About The Fixed Loan Rate

Fixed loan interest rates are common among many insurance companies. Fixed loan rates are much easier to understand as the term “fixed” means just that – the rate is fixed and will not adjust.  With that said, it is beneficial to be aware of what features exist with policies that carry a fixed loan rate.    Most companies/policies that have a fixed loan rate usually have a rate …

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What Is The Loan Interest

What Is The Loan Interest Rate? 

The loan interest rate on a policy will vary depending on the company. Typically, interest rates will vary from ~5% – 6% with most insurance companies, although some companies still carry an 8% loan interest rate.  Most Insurance policies offer a fixed or variable rate.  Some companies offer both, but the policyholder must select whether we want a fixed or variable rate when starting a policy. Once a policy is established, most companies do …

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Life Insurance Policy Loans

How Interest Works on Life Insurance Loans 

Interest on life insurance loans accrues at  daily, or at  annual simple interest. Let’s break this down…  We’ll start with annual simple interest. If one takes a life insurance loan out, the insurance company will charge simple interest for an annual term. Then we have the daily accrual. This can cause concern for any consumer when we hear the term “daily …

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