Comments and Q&A
What This Covers
This interactive Q&A dives into how loan interest works inside a participating whole life policy, especially with Equitable Life, and how to manage it without overcomplicating your system. The coaches clarify when and how to pay interest, how to communicate with the insurer, and why obsessing over interest breakdowns often does more harm than good.
Why Clients Use It
To understand how loan interest gets added or repaid
To learn the correct language to use with Equitable Life
To simplify policy management without micromanaging loan mechanics
To validate that regular repayments are more important than tracking every detail
Key Insights by Timestamp
(00:00 – 01:06)
Interest on a policy loan is either paid directly or capitalized (added to the loan).
Paying down principal by the same amount has the same effect—it avoids interest compounding.
(01:06 – 02:25)
Equitable doesn’t offer a formal “interest-only” payment template.
Instead, email them clearly: indicate your payment is to cover loan interest.
Life companies will apply it as a principal reduction, which indirectly pays the interest.
(02:22 – 04:30)
Equitable always applies payments to the loan principal.
To avoid interest capitalization, you can prepay that amount as a principal payment.
Example: If $650 in interest is due, pay it as a $650 loan repayment. Loan balance resets to original.
This is a vocabulary issue more than a mechanical one.
(04:30 – 06:10)
If you take loans multiple times a year, simply request the interest calculation shortly before your policy anniversary.
Add that amount to your annual premium payment and instruct Equitable to apply the extra to the loan.
(06:10 – 08:22)
Richard and Vern both emphasize: tracking loan interest is optional.
Richard has never asked the insurer for interest numbers. He repays loans regularly and reuses the capital.
If you’re using the system and money is flowing back, you’re doing it right.
(08:22 – 10:50)
Servicing interest becomes more relevant for clients with large, longstanding, or non-repaying loan balances.
For most people making consistent repayments, it’s not necessary to micromanage.
Final message: your feedback shapes these sessions. Clients at all experience levels are encouraged to share what would bring more value.