Every payment on a promissory note can be split between three destinations: a policy loan repayment, a PUA (paid-up additions) deposit, or cash. Policy Stack stores the split as a per-note default and applies it automatically when you record each payment, with optional per-payment overrides when one payment needs to go somewhere different.
The Three Destinations
Each side of a payment — the interest portion and the principal portion — can be routed independently to any combination of the three destinations:
- Loan — applied as a loan repayment against a specified policy loan. The loan's balance decreases by the routed amount.
- PUA — recorded as a paid-up additions deposit on a policy. Increases the policy's paid-up additions and, in turn, future cash value.
- Cash — captured as cash received against the deployment, no further action. This is the default.
The percentages on each side sum to 100. New notes default to 0 / 0 / 100 on both sides — every dollar lands in cash unless you opt in.
The Two Sides
A single note carries two routing configurations:
- Interest routing — how the interest portion of every payment is split
- Principal routing — how the principal portion is split
The two are independent. A common arrangement is interest → cash, principal → loan repayment: you take the interest as income and use the returning principal to pay down the policy loan that funded the note. But any combination works.