Reference

Sources for carrier rate data.

Last verified: May 27, 2026

We quote carrier policy loan rates only where we can verify them from public disclosures. Each carrier below lists the primary source we used and any secondary verification. If you find a number that’s outdated or wrong, email hello@trycove.co — we update this page when carriers change their practices.

Whole life carriers

Northwestern Mutual

Stated loan rate5.0% (newer policies), 8.0% (older fixed-rate series)
Direct RecognitionYes
2026 dividend interest rate~5.75%
Effective cost when DR applies7.0–8.0%

Primary source: Northwestern Mutual dividend page

Secondary verification: Inclined — Northwestern Mutual borrowing-cost case study

MassMutual

Stated rate (fixed election)8.0%
Stated rate (adjustable election)5.14–5.81% (variable)
Direct Recognition (fixed)Yes
Direct Recognition (adjustable)No
2026 DIRRefer to MassMutual’s published rate
Effective cost (fixed)~8.0%
Effective cost (adjustable)Equals stated

Primary source: MassMutual — “How the Dividend Interest Rate is Applied”

The election between fixed and adjustable is made at policy issue and is irrevocable.

Penn Mutual

Stated loan rate6.20% fixed
2026 DIR6.00%
Direct RecognitionYes — “Preferred Loan” offset from year 11
Effective cost~6.20% (years 1–10); near-neutral from year 11

Primary source: Penn Mutual product disclosures

Guardian

Stated loan rate~8.0% fixed (typical)
Direct RecognitionYes — first carrier to apply this practice, 1982
Loan spread~1.00% (years 1–20), 0.50% from year 21
Effective cost~8.0%

Primary source: Guardian dividend disclosures

Secondary verification: Inclined — Guardian case study

New York Life

Stated loan rateVariable, ~5.33% (Apr 2024), tied to Moody’s Corporate Bond Yield Average
Direct RecognitionNo (Non-Direct Recognition)
Effective costEquals stated rate

Primary source: NYL Custom Whole Life fact sheet, SEC filings

Universal life, indexed universal life, variable universal life

Covered in depth in a separate article. The summary here points to it.

Pacific Life

Pacific Horizon IUL 2Fixed-charge indexed loan, ~4.5% guaranteed

See article: Policy loan rates by carrier, 2026

Lincoln Financial

Accumulator IULVariable 6% (years 1–10), 5% from year 11

See article: Policy loan rates by carrier, 2026

Prudential

Momentum IULFixed = crediting rate + 1.00%; participating ~5%

See article: Policy loan rates by carrier, 2026

Carriers we don’t list

MetLife

MetLife exited the retail individual life insurance business in 2017 (spun off to Brighthouse Financial). They only service legacy whole life policies issued before that date. Because they’re not writing new policies, they’re not a viable comparison point for policy loan decisions today.

How we verify these numbers

The stated rate comes from the carrier’s published dividend disclosures, contract language, or policyholder service line. We prefer published documents when available. When a carrier only discloses the rate verbally on their service line, we note that.

The effective cost reflects the Direct Recognition adjustment where it applies. The math is: stated rate plus the difference between the regular dividend interest rate and the reduced dividend on the loaned portion of cash value. We use the carrier’s published DIR for the current year.

We re-check rates twice a year — once in May, once in November. Carriers change their dividend rates annually and sometimes change their DR practice. The “Last verified” date at the top of this page reflects the most recent check.

We don’t list a carrier unless we have a primary source. If we can’t find published numbers for a carrier you’re interested in, we say so — we don’t fill in gaps with estimates.

Found an error? Email hello@trycove.co with the source you’re seeing different numbers in. We respond within a business day.