What is the difference between a loan and a partial surrender/withdrawal?
A. A loan is a sum you borrow from us using your policy as collateral. Loans are subject to loan interest which will increase the outstanding loan amount each anniversary if not paid. Any unpaid loan will be deducted from the proceeds we pay following the insured person’s death. Loans may be repaid at any time before the death of the insured while the policy is in force. A partial withdrawal will result in a reduction of the cash value, accumulation value and the death benefit amount. A partial withdrawal may be subject to a pro-rata surrender charge and/or processing fee. A partial withdrawal cannot be repaid.
