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Don’t Delay, Repay Your Contract Loans

A great feature of many life insurance contracts, including many of those offered by Thrivent Financial, is the ability to access a contract’s accumulated value by taking a loan—handy in case of a financial emergency. In most cases, contract loans are not taxable. They are subject to interest charges, however, which are not tax-deductible.

If you are among the approximately 300,000 Thrivent Financial members who have an outstanding contract loan, it’s critical you understand this: Outstanding contract loans will reduce your death benefit and your cash surrender value, and may result in the termination of any death benefit guarantee or lapse of your contract. In that case, any gain in the contract becomes taxable as ordinary income for that tax year, even if the contract is reinstated.

Have questions about contract loans? Contact your Thrivent Financial representative.

Read more:
Accumulating Your Nest Egg Stretch Your Nest Egg in Retirement Don't Delay—Repay—Your Contract Loans

 

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Appleton Office:
4321 N. Ballard Road
Appleton, WI 54919-0001 USA
800-THRIVENT
(800-847-4836)
E-mail: mail@thrivent.com

Minneapolis Office:
625 Fourth Avenue S.
Minneapolis, MN 55415-1624 USA
800-THRIVENT
(800-847-4836)

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Thrivent Financial for Lutherans, Appleton, WI 54919-0001, is authorized to conduct business in all 50 states and the District of Columbia. NAIC # 2938-56014. Products issued by Thrivent Financial for Lutherans are available to applicants who meet membership, insurability, U.S. citizenship and residency requirements. Not all products described are available in all states. Thrivent Financial representatives are licensed insurance agents. Insurance and retirement products, where available, are individual contracts, (not group coverage), and issued by Thrivent Financial for Lutherans. Investment products are offered through Thrivent Investment Management Inc., 625 Fourth Ave. S., Minneapolis, MN 55415-1665, a wholly owned subsidiary of Thrivent Financial for Lutherans. Member FINRA. Member SIPC. Thrivent Financial representatives are registered representatives of Thrivent Investment Management Inc.

Bank products and trust services are offered through Thrivent Financial Bank, 2000 E. Milestone Dr., Appleton, WI 54919-0006 (Member FDIC, Equal Housing Lender), a wholly owned subsidiary of Thrivent Financial for Lutherans. Insurance, investment products, securities, trust, and investment management services and accounts are not deposits, are not FDIC insured, are not insured by any federal government agency, and are not guaranteed by Thrivent Financial Bank. Variable insurance contracts, investment products, trust, and investment management accounts may go down in value.

©1995-2008 Thrivent Financial for Lutherans

This document was last updated on Thursday, October 12, 2006 at 11:23 AM