A short YouTube clip by Jayson Lowe explaining why a policy owner might repay more than the required amount on a life-insurance policy loan: repaying more (including interest) increases the insurer's net earnings and provides the insurer with additional capital to multiply, effectively making the policy owner a co-owner that benefits from capital multiplication.
Why should a policy owner repay more than what they owe? Now, this would be in reference to what's called a policy loan. So if you're repaying a policy loan with interest, the amount of interest that the insurance company is calling for, then you are contributing to the net earnings of that insurance company in a positive way. If you put more capital back than what the insurance company calls for, then you're providing that insurance company, which you become a co owner of, with more capital to multiply. So the reason you would want to do that is that you like multiplying capital and you like co owning a business that's never failed to do that. So that would be the reason why a policy owner would pay back more than what the insurance company calls for.
