The Policy Loan Repayment Modeler compares how different monthly payment patterns change a policy-loan balance and interest over time. It is available on Starter and Builder Pro.
1. Choose the Loan
Start with either source:
- Saved policy loan — select an active loan and the model loads its current recorded balance and loan rate. Those inputs carry an Actual source badge.
- Manual entry — enter a balance, loan rate, and model horizon without linking the model to an account record. Those inputs are Modeled.
You can adjust loaded inputs inside the model without changing the saved loan.
2. Choose a Payment Path
The main payment step presents three paths:
- Interest only — models a monthly payment equal to accrued interest, keeping the balance approximately flat
- Retail-rate repayment — calculates a monthly payment from the retail comparison rate and repayment term you enter
- Custom plan — starts with a normal monthly amount and lets you override individual months
The plan comparison also includes Capitalize interest, which models no payments while interest is added to the balance.
The Retail comparison rate and Repayment term controls are grouped below the payment paths because they belong only to Retail-rate repayment. Enter the rate as a percentage and enter the term in either years or months. Changing either value recalculates the retail-rate monthly payment; it does not change the policy loan rate or any saved loan data.
The retail comparison rate is used only to calculate the retail-rate path. It does not replace the carrier loan rate used to accrue policy-loan interest.
3. Read the Plan
The Plan step shows the selected path in plain language, including:
- Modeled time until the balance reaches zero, when it does so within the horizon
- Monthly payment
- Total modeled interest
- First-year and total modeled balance reduction
- Month-by-month balance and payment detail
Open Full math for the side-by-side comparison and amortization table. The table lets you inspect capitalize-interest, interest-only, retail-rate, and custom results using the same loan inputs.
Save a Linked Plan
When the model started from a saved policy loan, Save to linked loan stores the selected plan with that loan. A manual-entry model has no linked record and cannot be saved there.
Saving a plan does not send money, contact the carrier, or record a loan repayment. Actual repayments remain separate records.
Saving a linked plan does not change Auto Log. If the loan has no schedule, Set up auto-log opens a separate repayment schedule with the modeled usual monthly amount as a starting point; confirm its amount, cadence, and start date before it is created. If a schedule already exists, Review auto-log returns to that schedule in the loan workspace instead of creating a duplicate.
Find this article from the tool
Select the walkthrough card or How this model works in the tool header to open this article directly. You can also open the app Help button while the modeler is open; it shows help articles for the modeler, or use the Help Center search for Policy Loan Repayment Modeler.
Every result is Modeled · Illustrative. Changing or saving a model does not change the loan balance.