Loan Type

Select the appropriate loan type if policy loans are requested.

• Participating Fixed Loans – Loaned money will be transferred to an Indexed Loan Account which is modeled after the Point to Point Cap Focus Strategy. A fixed loan rate of 5% is set at issue.
• Participating Variable Loans – A Variable Loan Rate is charged on the loan balance. However, this loan balance continues to earn interest based on your selected interest crediting options.
• Standard Loans – 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. 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. If Lifetime Income Benefit (LIBR) is selected as the Distribution Type then Standard Loan Type is required.

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