Policy mechanics

The banking metaphor is easier to evaluate when each transaction has a clear name. Premiums support insurance. Loan advances create debt. Interest pays a financing charge. Repayments reduce the liability.

Keep gross policy value, net surrender value, available loan value, and death benefit separate. That distinction helps you read an illustration and identify what a calculator leaves out.

Begin with the loan article. Then examine interest, growth during borrowing, and the amount available when you need it. You do not need to borrow frequently to make informed use of a policy.