Life policy loan request

How do we take a life policy loan request online or by phone, verify identity, keep the amount within the available loan value, capture the signature and disburse it with the loan recorded in the policy system?

Make the loan a computed offer the owner signs. Callvu verifies the policy owner, prefills the policy (the cash value, the existing loan balance and accrued interest, the maximum loan value under the contract, the loan interest rate and its basis, any assignment or irrevocable beneficiary that requires consent), takes the requested amount on a secure screen and keeps it within the available value, shows the effect on the policy (interest, the reduction in the death benefit, the lapse risk if the loan grows past the cash value), captures the owner's signature and the payee details, routes an exception to the policy service analyst in the Decision Desk, and disburses the loan with the record written to the policy system.

In scopeSimpleCallvu moves: prefill, decide, write back

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Last updated November 7, 2026.

The problem today

The loan was approved for more than the available value, the policy lapsed two years later, and the owner had never seen the illustration.

Today, without Callvu

A policy owner asks to borrow against a whole life policy. The agent takes the amount by phone and sends a form. The form is returned without the collateral assignee's consent that the policy required. The amount exceeds the loan value because the agent read an old statement. The loan posts; the interest compounds; the policy lapses with a taxable gain the owner did not expect.

A policy loan is a contract right with a formula: the maximum loan value, the interest rate (fixed or variable under the state's policy loan interest rate law and the contract), the effect on the death benefit and the cash value, and the risk that an unpaid loan exceeds the cash value and ends the policy with a taxable event. Consents from an assignee or an irrevocable beneficiary are conditions. The owner is entitled to understand all of it before signing.

The arithmetic belongs in the process, not in the agent's head.

How it runs

From the requestto the system of record.

A policy owner requests a loan online, in the app or by phone. Callvu verifies the owner and opens the request on the policy.

Policy owner: Requests the amount, reads the effects, signs and chooses the payee details on a secure screen.
Policy service analyst: Decides exceptions in the Decision Desk.
Callvu: Prefills, computes, discloses, captures the signature, routes and writes.

Verify and prefill
The owner's identity is verified; the policy is read from the policy system: the cash value, the existing loan and accrued interest, the maximum loan value under the contract, the loan interest rate and whether it is fixed or variable, the consents the policy requires (a collateral assignee, an irrevocable beneficiary, a community property spouse where the state requires), and any pending transaction.
Compute and disclose
The requested amount is kept within the available loan value; the effects are shown on the screen: the interest and how it accrues, the reduction in the death benefit and the cash value, the lapse risk if the loan plus interest exceeds the cash value, and the tax treatment of a lapse with a loan outstanding; where a consent is required, the consenting party signs on their own link.
Decide
A request within the available value with the consents in place is approved by rule; an exception (a request above the value, a missing consent, a policy in a grace period, a sanctions or fraud flag on the payee) goes to the policy service analyst in the Decision Desk with the computation and only the allowed outcomes.
Sign, disburse and write back
The owner signs the loan agreement, chooses the payee details on a secure screen (their own bank account, verified), the disbursement is made, and the loan with its date, amount, rate and the signed agreement is written to the policy system with the next statement showing it.

Where it ends: The loan was computed from the policy's current values, disclosed with its effects, consented and signed, and disbursed with the record in the policy system. The Decision Trace shows the computation and any exception decision; the Audit Trace shows the request, the signatures and the disbursement.

Runtime enforcement

What is enforcedwhile the work runs.

The regulations preloaded in Callvu Studio and the bank's own policies, applied as steps that run, not lines in a binder. A step that breaks a rule does not run, so a completed run was compliant.

Regulations

State policy loan provisions and the NAIC Model Policy Loan Interest Rate Bill (state codes such as California Insurance Code 10113.1 and New York Insurance Law 3203(a)(8)): A life policy with cash value must provide a loan right up to the loan value, at a fixed maximum rate or an adjustable rate tied to a published index as the state's law allows, with notice of rate changes; the loan plus interest reduces the death benefit and, if it exceeds the cash value, the policy terminates after the required notice period.
Internal Revenue Code 72(e) and 7702A (modified endowment contracts): A loan from a modified endowment contract is taxed as a distribution with a ten percent additional tax under age fifty-nine and a half, and a lapse with a loan outstanding on any policy produces taxable gain to the extent the cash value exceeds basis; the disclosure states the tax treatment for the policy's status.
Collateral assignment and irrevocable beneficiary consents (contract terms and state law): An assignee's or irrevocable beneficiary's consent is required for a loan where the contract or the assignment so provides; the process collects it from the consenting party on their own signature link.

Company policies

The amount never exceeds the available loan value computed from the policy system at the time of the request.
The effects, including lapse risk and tax treatment, are shown before the signature.
Required consents are collected from the consenting party, never attested by the owner.
The policy system is the system of record for the loan.

Controls

Identity verification.
Prefill and loan value computation from the policy system.
Disclosure of effects on the screen.
Consent collection from assignees and irrevocable beneficiaries.
Decision Desk for exceptions.
Payee verification, disbursement and policy system write.

Clocks and deadlines

Disbursement: Within the company's service level after the signed agreement, or within the period the state's code sets for policy loans (commonly up to six months may be deferred, but companies pay in days).
Lapse notice: The state's advance notice before a policy terminates for a loan exceeding the cash value, tracked on the policy.

Documents and checks

The prefilled policy values and the computation
The disclosure as shown
The consents
The signed loan agreement and the payee details
The disbursement and the policy system record

In the Decision Trace

The loan value computation.
The consents required and received.
Any exception decision and the person.

In the Audit Trace

The request with time and channel.
The signatures with time.
The disbursement and the write.

The handoff

Between the front doorand the back office.

The front door

Online, in the app or by phone; the owner reads, signs and chooses the payee on a secure screen.

The back office

The analyst sees only exceptions; the policy system holds the loan from the write.

The Decision Desk

A request above the available value, a missing consent, a grace period policy or a flagged payee goes to the policy service analyst in the Decision Desk with the computation and only the allowed outcomes.

Proof

In scope.Proof at scale, not one process at a time.

The kind of process Callvu runs in production for customers in this industry. Ask for a reference on this exact process. The results below are the industry's published proof; each claim code links to its record on agents.callvu.com.

Phoenix put more than 100 processes live in under 3 months.

Across Callvu customers

More than 1,000 processes are live across Callvu customers.

Across Callvu customers

Questions

What buyers ask next,answered plainly.

How much can the owner borrow?

Up to the available loan value computed from the policy's current cash value, existing loan and accrued interest, read from the policy system at the time of the request.

What is disclosed?

The interest and its basis, the reduction in the death benefit and cash value, the lapse risk if the loan outgrows the cash value, and the tax treatment, before the owner signs.

Whose consent is needed?

A collateral assignee's or an irrevocable beneficiary's where the contract requires it, signed by them on their own link.

Related processes

Partial withdrawals and surrenders Ownership change and collateral assignment Beneficiary changes Try it in the sandbox All insurance processes

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