Loan balance is the total amount currently owed on a policy loan, including the original amount borrowed plus any capitalized interest that has been added to the balance rather than paid separately.
Loan balances grow over time when interest is capitalized. Unlike conventional loans that require monthly payments, policy loans have no mandatory repayment schedule — the carrier simply adds unpaid interest to the outstanding balance each policy year.
In Policy Stack, loan balances are tracked per loan record. Each loan has a recorded balance that you update from your annual statement. The sum of all loan balances across a policy is shown on the policy detail page and used to calculate LTV and net cash value.
The snapshot's carrier-reported loan balance is the source for that policy's Actual position and charts. With automatic snapshot reconciliation enabled, it anchors the Loan Balance on its date. Later recorded activity changes the current balance. Unexplained differences appear as Statement adjustment or Starting balance, not recorded loans or interest charges. Earlier real activity replaces neutral statement differences without counting twice. Where automatic snapshot reconciliation is disabled, the existing balance-first flow can classify a material increase beyond expected interest as one canonical draw, nominal growth as capitalized interest (a rise from $0 is never counted as interest), and a decrease as repayment. Historical draw reconstruction can capture original/current-remaining amounts without changing the latest snapshot. See Snapshot Loan-Balance Review.
"Loan balance" is the correct term in whole life banking. Avoid "debt balance" — policy loans are not external debt; they are borrowings against your own asset.
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