Inforce Certification - Module 11: Policy Loans

The Inforce Certification provides a comprehensive understanding of the key aspects of life insurance policies once they are in force. This certification covers a range of topics related to policy services, technology, billing, changes, loans, and more. Participants will gain knowledge of how to manage policies post-issue, including understanding policy updates, billing processes, and critical policy changes. The course also includes guidance on the use of technology, such as online portals and software products, and addresses specific policy-related actions like reinstatements, conversions, and surrenders. It will also explore the financial implications of policy loans, collateral assignments, and premium financing. This certification is essential for those involved in life insurance policy administration and advisory services.

Module Overview:

Module 11 - Policy Loans

This module covers policy loans, allowing policyholders to borrow against a policy’s cash value. It explains loan limits, interest rates, repayment options, tax implications, and their effect on the death benefit. It also highlights the importance of Inforce illustrations to assess loan impact on policy performance.

Learning Objectives

• Define policy loans and their relationship to the cash value of permanent life insurance policies.

• Understand the terms of policy loans, including interest rates and loan limits.

• Describe the repayment options available for policy loans.

• Explain the tax considerations associated with policy loans.

• Recognize the impact of policy loans on the death benefit and life expectancy of a policy.

• Understand the risks associated with over-loan situations.

COURSE CONTRIBUTORS