The Policy Loan Repayment Modeler compares four illustrative paths for the same saved or manually entered policy loan.
Modeled Paths
- Capitalize interest: make no monthly payment and add accrued interest to the balance
- Interest only: pay modeled accrued interest while holding principal approximately flat
- Retail-rate repayment: calculate a payment from the comparison rate and term you enter, then apply that payment against the carrier loan rate
- Custom: enter a month-by-month payment plan and compare its balance and interest path
The comparison shows monthly payment, payoff timing, ending balance, and total interest. If net cost is enabled, it also compares modeled cash-value growth with interest expense.
All results are Modeled and illustrative. Saving a linked plan records the selected plan for later reference; it does not record a repayment or change the carrier account.