Loan Type

Select the appropriate loan type if policy loans are requested.

• Fixed – This option provides a true " wash loan " where the loan rate charged is equal to the loan rate credited, which is the Variable Loan Rate (VLR). This option is designed to provide the protection and stability for clients who may want to assume less risk when they start making distributions from the policy.
• Variable – A Variable Loan Rate (VLR) is charged on the loan balance. However, this loan balance continues to earn interest based on your selected interest crediting options.

If you still unsure which loan type to use please contact the Life Sales Desk to discuss your particular case.