The Policy Loan Repayment Planner compares four illustrative payment schedules for the same saved or manually entered policy loan and shows how one monthly amount can be split between paid-up additions and loan repayment.
Modeled Paths
- No payments: unpaid interest is added to the balance
- Monthly interest: pay the monthly interest charge; this schedule does not reduce principal
- Payment by term: set a payment rate and period; loan interest uses the policy 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.
Future values are illustrative. Saving a linked plan does not record a repayment or change the carrier account.