Common use of Loan Interest Credit Clause in Contracts

Loan Interest Credit. Loan Interest Credit will accrue daily. The Loan Interest Credit is calculated using the Loan Interest Calculation Method, shown in the Policy Specifications, and is based on the balance in the Loan Account using the Guaranteed Annual Loan Account Credit Interest Rate, shown in the Policy Specifications. The corresponding daily interest rate is equal to the annual rate divided by 365. Loan Processing on Policy Anniversary – On each Policy anniversary, the Loan Interest Charge is due. Any portion of the Loan Interest that is not paid when due will be added to the Loan Account and bear interest at the same rate. Further, on each Policy anniversary we will adjust the values of the Policy Debt, Loan Account and Loan Account Value so that they are equal to each other. If the Policy Debt is greater than the Loan Account Value, which is generally the case when the Policy loan interest has not been fully paid, the excess of the Policy Debt over the Loan Account Value will be processed as an Account Deduction. If the Loan Account Value is greater than the Policy Debt, which is generally the case when the Policy loan interest has been paid, the excess will be processed as an Account Addition.

Loan Interest Credit. Loan Interest Credit will accrue daily. The Loan Interest Credit is calculated using the Loan Interest Calculation Method, shown in the Policy Specifications, simple interest method and is based on the balance in the Loan Account using the Minimum Guaranteed Annual Loan Account Credit Interest Crediting Rate, shown in the Policy Specifications. The corresponding daily interest rate is equal to the annual rate divided by 365. Loan Processing on Policy Anniversary – On each Policy anniversary, the Loan Interest Charge is due. Any portion of the Loan Interest that is not paid when due will be added to the Loan Account and bear interest at the same rate. Further, on each Policy anniversary we will adjust the values of the Policy Debt, Loan Account and Loan Account Value so that they are equal to each other. If the Policy Debt is greater than the Loan Account Value, which is generally the case when the Policy loan interest has not been fully paid, the excess of the Policy Debt over the Loan Account Value will be processed as an Account Deduction. If the Loan Account Value is greater than the Policy Debt, which is generally the case when the Policy loan interest has been paid, the excess will be processed as an Account Additiontransferred according to your most recent premium allocation instructions.