Loans On Investments
Contents
In previous versions, Advisors Assistant had a field on the Modify Investment Screen for a loan so that a user could reflect a loan on an investment.
Loans may reflect themselves in margin accounts in the cash account which can have a negative value, but we removed the field from the investment record itself.
In the case of a variable annuity or variable life, loans are a contractual benefit and are collateralized by the investments, including a fixed value investment. The loan amount belongs on the policy record.
If you want to reflect a loan on an annuity, the correct place to put the value is in the insurance record because it is the insurance contract that provides the loan feature. The loan is a single item that is reflected for the entire insurance contract.
By using the Funding Option field in the Add/Modify Coverage Details Screen, you can connect the insurance contract to the investment values in the Investment Module so that the cash value and net cash value in the insurance record will automatically update based on the investments that fund the policy
See Also
Funding