How Does A Loan On A Life Insurance Policy Work? 
There are several policy loan provisions used in life insurance contracts . Participating whole life insurance policies use spread loans and direct recognition loans . Current Interest Rate , Index and Variable Universal life insurance contracts use zero net cost loans , wash loans , spread loans and participating loans both fixed and variable loans . Keep in mind that the current company practice of loan charges may be different from the contractual maximum they could charge . So its important to purchase life insurance contracts with loan provisions that are favorable . After all it is your money . And we can help with that . 