How can I take out a loan against my Centrian Life Insurance policy?
If you have a Whole Life policy (a policy that builds cash value), you can take a loan against the available cash value. Loan interest (applicable rate) would be due in advance from the date the loan was taken to the next policy anniversary date. The loan interest due in the initial year is taken from the loan check that we send to you so that there are no initial out of pocket costs. Interest is then charged once a year on the policy anniversary.
If you would like to request a policy loan against your available policy cash value, simply contact our Call Center and a representative can process your request.
Note: When contacting our call center, you will be requested to provide positive verbal identification as a policyowner.
Our mailing address is:
Centrian Life Insurance
P. O. Box 4044
Woburn, MA 01888-4044
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What is the loan interest rate I will be charged and how often?
Loan interest is due from the date of the transaction through the next policy anniversary date and is then due annually thereafter. Centrian Life forwards annual statements to policyowners notifying them of any loan interest due.
LOAN INTEREST RATES
- Policies Issued Prior to March 1, 1970 - 5.00 %
- Policies Issued from March 1, 1970 to October 3, 1979 - 6.00 %
- Policies Issued from October 4, 1979 to October 31, 1981 - 8.00%
- Policies Issued November 1, 1981 To Present - Variable Rate. Contact the Centrian Life Call Center to review the current interest rate for your specific policy.
Note: When contacting our call center, you will be requested to provide positive verbal identification as a policyowner.
Our mailing address is:
Centrian Life Insurance
P. O. Box 4044
Woburn, MA 01888-4044
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How do I repay a policy loan?
Loan repayments are accepted at any time and in any amounts. Simply submit your check with your policy number and a note that specifies it is for a loan repayment.
Once the repayment is applied to the outstanding loan, we will forward the policyowner a notice of the transaction. This notice will include the amount of the repayment, interest adjustment (loan interest, paid in advance, is rebated with each repayment made), total repayment, and new loan balance.
Note: We do not bill for the principal portion of the loan balance.
Note: When contacting our call center, you will be requested to provide positive verbal identification as a policyowner.
Our mailing address is:
Centrian Life Insurance
P. O. Box 55249
Boston, MA 02205-5249
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What is an Automatic Premium Loan?
An Automatic Premium Loan is also referred to as "APL" or the "APL provision." This feature is available on policies that build cash value such as Whole Life policies. This provision is a safeguard which creates a loan on the policy by borrowing against the cash value of the policy in order to pay any overdue premium. This can only be done provided the cash value is sufficient to cover the overdue amount. Loan interest is charged from the date of the APL until the next anniversary and is also charged annually until the loan is repaid. Loan repayments are accepted at anytime and in any amounts. Simply submit your check with your policy number written on it and include a note that specifies it is for a loan repayment.
Note: When contacting our call center, you will be requested to provide positive verbal identification as a policyowner.
Our mailing address is:
Centrian Life Insurance
P. O. Box 55249
Boston, MA 02205-5249
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Why is there a loan balance on my policy? I never took out a loan.
The loan balance on the policy may have been created by a policy provision known as Automatic Premium Loan (APL). This feature enables a policy to remain in force without lapse in coverage due to non-payment of premium.
APL pays any overdue premium by creating a policy loan against the cash value of the policy. This is only effective if the cash value is sufficient to cover the overdue amount. Loan interest is charged from the date the APL provision was activated until the next anniversary and is also charged annually until the loan is repaid.
Note: When contacting our call center, you will be requested to provide positive verbal identification as a policyowner.
Our mailing address is:
Centrian Life Insurance
P. O. Box 4044
Woburn, MA 01888-4044
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