Loan Interest Rate = Bank Rate + Credit Adjustment Rate + Security Rate
Calculated Interest Rate
7.25%
Reserve = Remaining months to anniversary + 2 months (delinquency buffer)
Reserve period: 12 months (10 + 2 months delinquency buffer)
$36,250.00
Select the disbursement option below
Loan Amount (= Cash Surrender Value)
$500,000.00
CSV: $500,000.00
− Existing Loan: $50,000.00
− Annual Installment: $12,000.00
− Interest Reserve: $36,250.00
− Application Fee: $2,500.00
− Legal Fee: $1,500.00
Shortfall / Available Amount
$397,750.00
CSV: $500,000.00
− Existing Loan: $50,000.00
− Interest Reserve: $36,250.00
− Application Fee: $2,500.00
− Legal Fee: $1,500.00
Borrower Distribution Amount
$409,750.00
Interest Rate Formula
5.00% + 1.50% + 0.75% = 7.25%
Bank Rate + Credit Adjustment + Security Rate
Interest Reserve Formula
12 months × ($500,000.00 × 7.25% ÷ 12)
(10 remaining + 2 delinquency buffer) months
Projection showing the reducing shortfall of cash surrender value over 5 years based on Option 1 (Shortfall)
| Year | Cash Surrender Value | Interest Accrued | Loan Balance | Net Equity | Shortfall |
|---|---|---|---|---|---|
| Current | $500,000.00 | — | $500,000.00 | $0.00 | -$12,000.00 |
| Year 1 | $530,000.00 | $36,250.00 | $536,250.00 | -$6,250.00 | -$18,250.00 |
| Year 2 | $561,800.00 | $38,878.13 | $575,128.13 | -$13,328.13 | -$25,328.13 |
| Year 3 | $595,508.00 | $41,696.79 | $616,824.91 | -$21,316.91 | -$33,316.91 |
| Year 4 | $631,238.48 | $44,719.81 | $661,544.72 | -$30,306.24 | -$42,306.24 |
| Year 5 | $669,112.79 | $47,961.99 | $709,506.71 | -$40,393.92 | -$52,393.92 |
Confidential — For Internal Use Only
Borrower
John Doe
Policy / Account Number
POL-2024-001
Date
2026-06-01
Disbursement Option
Option 1 — Shortfall Amount
Security (CSV)
$500,000.00
Loan Amount
$500,000.00
Interest Rate
7.25% p.a.
Interest Reserve
$36,250.00
Application Fee
$2,500.00
Legal Fee
$1,500.00
Net Shortfall / Available Amount
$397,750.00
| Year | CSV | Interest | Loan Balance | Net Equity |
|---|---|---|---|---|
| Current | $500,000.00 | — | $500,000.00 | $0.00 |
| Year 1 | $530,000.00 | $36,250.00 | $536,250.00 | -$6,250.00 |
| Year 2 | $561,800.00 | $38,878.13 | $575,128.13 | -$13,328.13 |
| Year 3 | $595,508.00 | $41,696.79 | $616,824.91 | -$21,316.91 |
| Year 4 | $631,238.48 | $44,719.81 | $661,544.72 | -$30,306.24 |
| Year 5 | $669,112.79 | $47,961.99 | $709,506.71 | -$40,393.92 |
Agent / Distributor Signature
Date: _______________
Borrower Signature
Date: _______________
This term sheet is provided for informational purposes only and does not constitute a binding offer or commitment to lend. Final terms are subject to credit approval and documentation.