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Loan rate on the policy I just surrendered had just moved up to 5%.
The one purchased three months earlier in 1993, still has a 4.25 interest rate.
Same EXACT policy description. Same policies, just bought 3 months apart in 1993.
Why do they do that ?
Because they can
Because they don’t care
Because they don’t know.
Loan rates are based on a formula.
There is a reason and its stated in the contract.
It could be a benchmark of some kind that was set on the policy date.
Hard to say without seeing the contract.
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But they are not able to just do whatever they want with the Loan rate. Its stipulated in the contract.
Even if the policies have the same "name" they could be different versions.
Guardian for example, has a 2019 L99..... and a 2022 L99.
Both say L99 on the statements... but the features in the contracts are different.
Just 1 week later means having the 2022 version vs. the 2019 version.
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