IUL Loans and Lapse Risk
Learn why funding, charges and loan mechanics matter to long-term policy performance.
The planning principle
Loans can affect credited values, death benefits, and policy sustainability. A heavily borrowed or underfunded policy may face greater lapse risk, particularly if actual crediting is lower than illustrated.
What to review
Start with the financial objective, then compare contract provisions, affordability, guarantees, non-guaranteed elements where applicable, and the consequences of changing the plan later. Product availability and underwriting vary.
Use the complete planning guide.
The main topic page includes a worksheet and comparison questions to use before a coverage conversation.
Get the Free GuideEducational information only. This page is not tax, legal, investment, or individualized insurance advice. Review actual carrier and policy materials before making a decision.