Loan Interest Charge. Interest will accrue daily based on the balance of the Loan Account and will be due on each Policy anniversary. Such interest is calculated using the simple interest method and is based on the balance in the Loan Account, using the Maximum Annual Loan Account Charge Interest Rate, shown in your Policy Specifications. We may use a lower Loan Interest Charge rate. The corresponding daily interest rate is equal to the annual rate divided by 365. If the Policy terminates before a Policy anniversary, the Loan Interest Charge will be due at such time.
