Annuity glossary
Wash Loan
A policy loan in which the insurer credits the cash value backing the loan at the same rate it charges in loan interest, making the net cost of borrowing effectively zero. Wash loans are common in IUL retirement-income strategies, though the exact terms are set by the insurer and may only apply in later policy years. Loans still reduce the death benefit, and a lapse with loans outstanding can trigger taxable income. Policy documents explain the timing, charges, limits, and conditions that apply to the owner.
Any guarantee is backed by the claims-paying ability of the issuing insurer.
Keep learning
Put this term in context.
Continue with the guide that most directly explains where this term appears and what to review in a contract.
Educational film
See the retirement tradeoffs in context.
The Descent is a short educational film about income, taxes, and uncertainty after work. Watch it to build context before considering any insurance product.
Watch The Descent