Sometimes, life insurance companies differentiate how interest is applied to policy loans by using the terms “in Advance” or “in Arrears.” This has led to the common question: is there a difference in the rate and how the company applies it to your loan balance? The answer is a resounding NO. In Advance vs In Arrears “In advance” refers to what the insurance calls a “rate” for making your loan payments upfront. This confuses the issue because people then believe it’s a completely separate interest rate when it’s not. This
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