Free tool
Policy Loan Calculator
Borrowing from your whole life policy? See when your loan could be paid off and how much interest it could cost, based on your repayment plan.
Your numbers
Your policy and loan
Your repayment plan
Good to know: Any unpaid loan balance, including unpaid interest, is subtracted from your policy's death benefit and cash value. If the loan balance grows larger than the cash value, the policy could lapse. Loan rates, how interest is charged, and repayment terms depend on your specific policy and insurer, so check with them before you borrow. This calculator does not show cash value growth or dividends.
For illustration only. Not financial advice.
How it works
How a policy loan works
- You borrow against your policy: the insurer lends you money and uses your policy's cash value as collateral.
- Interest builds daily: each day, interest accrues on the principal you still owe. Once a year, on your policy anniversary, that interest is added to the loan.
- Payments go to principal: every dollar you repay lowers the principal. Any unpaid balance reduces the death benefit and cash value.
What this assumes
Interest accrues every calendar day at your yearly rate divided by 365, including February 29 in leap years, and accrued interest does not earn interest until it is added to the loan on the anniversary. A February 29 anniversary is treated as February 28 in other years. The schedule shows policy anniversaries when interest is added, loan anniversaries as yearly snapshots, and calendar days since the loan was taken. If both anniversaries share a date, they appear in one row. Payments start one period after the loan date. Policies differ, so check how your insurer charges loan interest.
This calculator is for educational purposes only. It is not legal, tax, accounting, or insurance advice. Policy loan terms vary by policy and insurer. Please speak directly with a qualified professional and your insurer about your own situation.
Your next step
Questions about borrowing from your policy?
Book a free 30-minute first call with our team. We talk about where you are and whether Infinite Banking fits your goals.