Policy Debt definition

Policy Debt. The principal amount of any outstanding loan against the Policy, plus accrued but unpaid interest on such loan.

Policy Debt. The sum of all unpaid policy loans and accrued interest thereon.

Policy Debt means the aggregate amounts that you owe us under this Policy, including any accrued interest.

Examples of Policy Debt in a sentence

• The sum of any outstanding loan amounts plus accrued loan interest is the Policy Debt.

• In determining the amount of the death proceeds, the death benefit will be reduced by any outstanding Policy Debt and increased by any unearned loan interest and any premiums paid after the date of death.

• Thereafter, interest not paid when due will be added to the existing Policy Debt and bear interest at the same rate charged for Policy Loans.

• Interest is payable in advance at the time any Policy Loan is made (for the remainder of the Policy Year) and on each Policy Anniversary thereafter (for the entire Policy Year) so long as there is Policy Debt outstanding.

• The interest credited will remain in the Declared Interest Option unless and until transferred by the Policyowner to the Variable Account, but will not be segregated within the Declared Interest Option as security for Policy Debt.

More Definitions of Policy Debt

Policy Debt means amounts owed to us under the "Cash loan" and "Automatic premium loan" provisions, including interest.

Policy Debt is equal to unrepaid policy loans (including unpaid interest added to the loan) plus accrued interest not yet due.

Policy Debt. The Policy Debt is the amount necessary to repay the Policy Loan in full and is equal to the Loan Account plus any Loan Interest Charge. The Policy Debt reduces any amount otherwise payable under the policy.

Policy Debt. The "Policy Debt" is equal to unrepaid policy loans (including unpaid interest added to the loan) plus accrued interest not yet due.

Policy Debt. The amount of outstanding loans plus accrued interest. Policy Debt is deducted from proceeds payable at the death of the second insured to die, on maturity, or at the time of surrender. Policy Month - A one-month period beginning on a Monthly Anniversary Day and ending on the day immediately preceding the next Monthly Anniversary Day.

Policy Debt. The sum of all outstanding policy loans plus accrued interest. Policy Effective Date: The date shown on the Policy Schedule and on which coverage takes effect. For any increase, decrease, additions, or changes to coverage, the Policy Effective Date shall be the first Monthly Anniversary Day on or following the date the supplemental application is approved by the Company. The Policy Effective Date will never be the 29th, 30th or the 31st of a month. Policy Value: The sum of the Variable Account Value, the Fixed Account Value and the Loan Account Value. The Policy Value on the Policy Effective Date is the initial Net Premium less the Monthly Deduction for the upcoming month. Policy Year: Each period of 12 months commencing with the Policy Effective Date.

Policy Debt means the total outstanding loans with interest. Policy debt must not exceed the cash value of the policy. If policy debt ever equals or exceeds the cash value, the policy will cease thirty-one days after we have mailed written notice to your last known address and to the address of any collateral assignee of the policy as shown by our records. The interest rate charged on policy debt is 6% per year compounded annually. A policy loan may be for any amount which does not exceed the cash value on the next premium due date or the next policy anniversary, if sooner, minus interest in advance to the end of the current policy year, any premium due that is unpaid and any policy debt. You may repay all or any part of policy debt at any time. Any policy debt will be deducted from the amount payable if you surrender the policy, from any amount applied to a settlement option or from the amount payable by reason of the Insured’s death.