Jayson Lowe explains that policy loans accrue simple interest but you don't have to pay it annually. Unpaid interest gets added to the loan balance. He emphasizes working with a knowledgeable guide before borrowing to ensure you can repay on your own schedule.
Again, another good question. So simple interest accrues on a policy loan balance. You're not required to pay it on an annual basis. You wouldn't want to access a policy loan without first having a plan to repay it, but mechanically you're not required to. If you don't pay some or all of that accrued interest, it's simply going to be tacked on to the loan balance. And that's again why it's super important to have a great guide, a coach, that can help you identify the best way to get started so that when you plan to access policy loans, you have a plan and the resources to repay those policy loans on your schedule.
