Customer Service

Policy Loans and Withdrawals

  • What options do I have other than surrendering/canceling my policy?
  • Depending on your policy type and value, you may have one or more of the following options of accessing your policy value without canceling your valuable life insurance coverage: 
    • Loan 
    • Partial surrender/withdrawal 
    • Premium deposit withdrawal (available on policies with a premium deposit account only) 
    • Dividend withdrawal (available on participating policies only)

  • What is the difference between a loan and a partial surrender/withdrawal?
  • A loan is a sum you borrow from us using your policy as collateral. Loans are subject to loan interest which will increase the outstanding loan amount each anniversary if not paid. Any unpaid loan will be deducted from the proceeds we pay following the insured person’s death. Loans may be repaid at any time before the death of the insured while the policy is in force.

    A partial withdrawal will result in a reduction of the cash value, accumulation value and the death benefit amount. A partial withdrawal may be subject to a pro-rata surrender charge and/or processing fee. A partial withdrawal cannot be repaid.

  • Do I have to repay a loan or partial withdrawal?
  • A loan can be repaid at any time before the death of the insured while the policy is in force. Any unpaid loan will be deducted from the proceeds we pay following the insured person’s death.

    A partial withdrawal cannot be repaid.

  • How can I repay my loan?
  • You may repay all or part of your loan at any time before the death of the insured person while the policy is in force. You must designate any loan repayments as such; otherwise, we will treat it as a premium payment instead. For your convenience, we can set up automatic loan repayment reminders or automatic deductions from your bank account on a monthly, quarterly, semi-annual or annual basis.
  • What is the difference between a net and gross disbursement?
  • Gross refers to the actual dollar amount requested and does not take into consideration applicable charges or fees. When requesting a gross disbursement for a specific amount, the check amount will be less than the specified amount.

    Net refers to the requested check amount after all applicable charges or fees are taken. When requesting a net disbursement for a specific amount, the check amount will be the amount requested but the actual disbursement applied to your policy will usually be greater than the requested amount. 

  • Can my disbursement check be mailed using overnight delivery? What is the cost?
  • Yes, your request can be mailed overnight at your request. The cost for overnight delivery is $20. Your request will be processed in the order it is received and typically will be completed within the following time standard. The overnight instruction applies only to the mailing of your disbursement and does not reduce the standard processing time.
  • Can my disbursement proceeds be mailed to an alternate address?
  • Yes, checks can be mailed to an alternate address. Please complete Section E in the Policy Cancellation and Disbursement form (Non-New York) or (New York) and select the "Mail to Alternate Address" box.
  • Can my disbursement check be made payable to a third party?
  • No, checks must be made payable to the policy owner, unless the policy is assigned or being transferred or exchanged to another company.
  • Can my partial withdrawal be used to pay off an existing loan on the same policy?
  • Depending on your policy provisions and current value, you may have the option of taking a portion of your cash value as a partial surrender or withdrawal to pay off an outstanding loan. A verbal request is sufficient for partial withdrawal requests less than $50,000. Request greater than $50,000 require a written request or a completed Policy Cancellation and Disbursement form (Non-New York) or (New York).
  • Can my partial withdrawal be used to pay off an existing loan on a different policy?
  • Depending on your policy provisions and current value, you may have the option of taking a portion of your cash value as a partial surrender or withdrawal to pay of an outstanding loan on a different policy. The Policy Owner must be the same on each policy. A verbal request is sufficient for partial withdrawal requests less than $50,000. Requests greater than $50,000 require a written request or a completed Policy Cancellation and Disbursement form (Non-New York) or (New York).
  • Can my loan be used to pay a premium on the same policy?
  • Depending on your policy provisions and current value, you may have the option of taking a portion of your cash value as a loan to pay a premium. A verbal request is sufficient for loan requests less than $50,000. Requests greater than $50,000 require a written request or a completed Policy Cancellation and Disbursement form (Non-New York) or (New York).
  • Can my loan be used to pay a premium on a different policy?
  • Depending on your policy provisions and current value, you may have the option of taking a portion of your cash value as a loan to pay a premium on a different policy. The policy owner must be the same on each policy. Requests greater than $50,000 require a written request or a completed Policy Cancellation and Disbursement form (Non-New York) or (New York).
  • Can I request a loan or partial withdrawal on my qualified policy?
  • Please contact our customer service center to see if a loan or partial can be requested on your policy.
  • What if my policy is a modified endowment contract (MEC) and I wish to request a loan, partial withdrawal, or dividend withdrawal?
  • A signed written request including tax election or a completed Policy Cancellation and Disbursement form (Non-New York) or (New York) is required. Disbursements from a policy that is a MEC may incur a tax penalty. Please consult a tax advisor for more information on these penalties.

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