Policy Loans

Julie requests a loan off her policy to pay a premium that is due. the insurer may delay the request for how many months?

0

loans and nonforfeithure options

if a policy is surrendered for an option other than cash, and outstanding debt is deducted from the original policies cash value and the difference is used to buy a reduced paid-up amount of insurance or extended term

loan value=

cash value- (unpaid loans and interest)

deferring policy loans

insurer may delay or defer a request for a policy loan for up to 6 months. unless the loan is made for the purpose of paying premiums that are due

nonpayment of policy loans

if a policy loan or the interest on a policy is not paid the amount is added to the indebtness on the policy

policy loan

option is only found in policies that contain cash value. the policy owner can borrow an amount equal to the cash value

the minimum variable interest rate that a company can charge is the policies guaranteed cash value rate plus?

1%

when an insurance company loan money from the cash value of a policy, it does not have that money to invest. (loss) in order to oddest the loss of investment the insurance company charges the policy owner?

rate of interest

collateral for policy loans

value of the policy