A Pan-American Life Insurance Group Stock Company

Repaying Policy Loans

When you take a loan on your policy, you are actually drawing on the company’s general assets that would otherwise be earning interest elsewhere. The loan interest you pay makes up for this lost revenue. In order to retain your insurance protection, it’s important to plan your loan repayment process at the time you borrow against the policy. Any amount that isn’t repaid will be deducted from your policy’s cash-surrender value. If the insured dies before the loan is paid back, the outstanding amount is deducted from the death benefit. In addition, outstanding loans can negatively impact dividends.

You can repay policy loans anytime. Mutual Trust also offers these easy methods to repay them.

  • Repay at the time you normally pay your premiums: You can repay your policy loan at the time you normally pay your premiums, such as monthly, quarterly, semi-annually, or annually, or you can arrange to use one of the following automatic loan repayment methods.

  • Pre-Authorized Payment (Form No. 2501): On the monthly billing date for your policy premium, MTL will draw the additional amount you specify from your bank account ($25 minimum) as a loan repayment. This debt is paid by electronic transfer and will appear as an entry on your bank statement.

  • Automatic Loan Repayment (ALR): By completing a request, using Form No. 1823, you may arrange for a separate bank deduction ($25 minimum) on a monthly basis, whether or not you pay premiums by Pre-Authorized Payment.
For more information on repaying policy loans, please contact Mutual Trust at 800-323-7320, ext. 5060.


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• Check your coverage information

• Monitor your policy and loan values

• View your current and past statements

• Download routine service forms

• Communicate with your agent

Form No. 190