Loans

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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Life Insurance Policy

When Can I Take a Loan From a Life Insurance Policy?

Loans typically can be taken from a life insurance policy at anytime.  With that said, it is always important to check the insurance company you are considering, as some companies do not allow loans to be taken in the first policy year. The insurance product we select is also important. For example, survivorship policies are sometimes …

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