How to Create a Printable Amortization Schedule

Do you have a client who's looking to create an amortization schedule for their policy loan? You can actually create one for them in the Loan Analysis calculator that's fast and simple. You can even print it out for the client to track themselves.

Creating an Amortization Schedule

The great thing about policy loans are the freedom to pay it back on a schedule of your choosing. However, this doesn't mean your client should delay payments or skip out on interest. It's still wise to have a schedule and stick to it as much as possible. That way, your client is being a good steward of his or her wealth.

For this example, let's say your client wants to pay back their loan over 4 years (or 48 months). They've borrowed $35,000 and the insurance company is charging 6.5% interest on the policy loan.

Below, you'll see that for the time frame of your client's choosing, the minimum they can contribute to pay down the loan would be $830.02.

Amortization schedule, basic

This is your basic amortization schedule, and you can create one for any policy loan by determining how long you or your client wants to spend paying it down.

Choosing an Alternate Payback

Now, let's think about Alternate Paybacks. An Alternate Payback helps your client consider what their amortization schedule would look like if they paid additional interest on top of what is due.

Under the Alternate Payback column, we'll put 10% and hit enter. This should auto-calculate the rest of the figures, showing that by applying a little bit extra each month, your client can pay down the loan in 44.47 months. This will increase the monthly payment to $887.69.

Note that until you press the button that says “Apply Excess Payments to Loan,” it's simply listed under Extra Payment. Once you hit the button, you'll see the new amortization reflected in the chart. That's because you have the option to explore what those excess payments would look like if you saved them along the way, which can often be advantageous. To do that, you can add a number to the NET Savings Rate, to see what the excess would earn, instead.

By playing around with Alternate Paybacks, you can help your client explore a payment option that they're comfortable with.

Amortization schedule, alternate payback

Printing Your Amortization

Once you and your client have an amortization schedule that you're happy with, you can print it out. First, you'll want to click the Period Number button (above the A/M/Q/S designation). By clicking this, you can actually add a specific start date to your chart. Choose whatever date your client wishes to make their first payment, and the whole chart will adjust itself from there.

Then, simply right-click any black space on the calculator, and two choices should appear, Print being one of them. Click it, and print it to your specifications. You can also choose to copy the chart as a picture, then paste it into a document yourself. While this can be helpful, it's only going to show a static image of whatever was showing when you clicked Copy As Picture. In other words, your client won't get the full chart.

This is such a simple and useful way to provide some value to your clients who are utilizing their whole life insurance for policy loans. Of course, it can be useful for any other type of loan, too. For more tips and tricks, be sure to check out the rest of the blogs, including Using Funding to Compare Whole Life Insurance IRR to Other Assets

To learn more about Truth Concepts calculators and how to use them more efficiently, attend a 3-day Truth Training. Surrounded by your peers, you'll have the opportunity to learn straight from the mind behind Truth Concepts.