There are two kinds of loan rates when you talk about using the loan provisions in life insurance. Actually, this is the most powerful aspect of having a permanent life insurance. It allows you to get grow your money tax deferred inside a life policy and allows you to get it tax free through loans to be used mainly for retirement at any age.

Now that you know the secret of tax free retirement, let's talk about the diferrence between Variable Loan Rate (VLR) and Fixed Loan Rate (Fixed).

1. VLR - allows you to take loans while leaving your money in the policy and accrue interest based on your index. insurance companies will then charge you a variable loan rate base on the