Term
| the major advtg of a policy loan is the relatively low rate of |
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Term
| the low policy loan rates of 5, 6, or 8% are substantially lower than |
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Term
| there is not credit check on the policy owner's ability to repay the loan; there is no fixed repayment schedule; and the policy owner has complete financial flexibility in determining the amt and frequency of loan repayments |
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Term
| the major disadvtg of policy loans is that the policy owner is not legally required to |
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Term
| the policy could lapse if the total indebtedness exceeds the available cash value |
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Term
| rather than repay the loan, may let the policy lapse or may surrender the policy for any remaining cash value |
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Term
| a disadvtg of policy loans is that if the loan has not been repaid by the time the policy matures, the face amt of insurance is reduced by the |
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