Why Do Variable Life Policies Need Their Own Line of Credit?
You have both Variable and non-Variable policies, and they can't share one line of credit. Keeping them separate is what lets us offer our lowest rates on Whole and Universal Life.
If you have Variable Life policies and Whole Life or Universal Life policies, you'll need two separate Inclined Lines of Credit: one backed only by your Variable policies, and another for the rest. Here's why.
Variable Life Carries Different Risk
A Variable Life policy's cash value is invested in the market, so it moves up and down daily. A Whole Life or Universal Life policy's cash value doesn't carry that same risk. Because of this difference, we can't treat them the same way when we price and manage a line of credit.
Separating Them Protects Your Rate
Keeping Variable Life on its own line is what lets us continue offering our lowest rates on Whole and Universal Life. If we combined them, every line would need to be priced for the added risk that Variable Life brings — including the parts backed by your steadier policies. Separating them means your Whole and Universal Life policies keep the pricing they've always had.
What This Means for You
If you apply for a line of credit using both types of policies, we'll let you know that you'll need to open two lines instead of one, and ask which you'd like to proceed with first. You're welcome to open a second line with your remaining policies whenever you're ready.
Have Questions?
If you have any questions about why Variable Life needs its own line of credit, please reach out to our Support Team at support@inclined.com.