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2. no margin calls. If they ever accidentally lend too much (which doesn't happen, but if they did,) they simply stop lending on that contract.
and/or require additional premium to sustain the contract...

COULD... unless an 'overloan protection rider' is elected, which is offered at no charge by all the carriers I would consider worthwhile.

With such rider elected (which is an automatic selection, manual opt-out required, for IULs designed for accumulation for later loan distribution,) the carrier takes responsibility for maintaining the contract in full force should the loans accidentally be made beyond the contract's ability to keep the premiums paid.

Its actually a curiosity to me why its even made as an opt-out option at all... I suspect something to do with getting it approved in various states. Sounds sufficiently illogical to be a regulatory requirement ;~)

Dave Donhoff
Leverage Planner
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