The Overloan Lapse Protection Rider II can be an important safeguard for your policy if you make extensive use of policy loans. The rider sends you notifications to help protect your policy from lapsing and incurring a potential tax consequence. To activate the rider:
- Your policy must reach its 15th anniversary
- You must be 65 or older
- Policy debt must reach the trigger point (a certain percentage of the policy’s cash value, which varies based on your age)
There is no charge to add the Overloan Lapse Protection Rider to your policy, and there are no periodic charges. When the rider is activated, there’s a one-time rider charge, which is a percentage of the cash value based on your age.
Please refer to your insurance contract, product prospectus or investment professional for specific details.