Fixed Loan Interest

Fixed Loan Interest refers to the predetermined, unchanging interest rate charged on policy loans borrowed against the cash value of the policy. When a policyholder takes a loan from their IUL policy, they can typically choose between a fixed or variable loan interest rate.

Opting for a Fixed Loan Interest means that the interest rate on the borrowed amount will remain constant over the duration of the loan, regardless of market fluctuations or changes in the credited interest rates within the policy. This can provide policyholders with predictability and stability in their loan repayment schedule.