Most variable-life policies feature the ability to take loans against the policyholder's account. When an investor borrows from a Variable Life, the amount of the loan is usually withdrawn from the subaccounts and transferred to a loan account that accrues interest at a defined rate, usually about 100 basis points below the interest rate of the loan. Thus, the difference between the loan account yield and the interest rate of the loan, the net interest, is the actual interest rate that the investor pays on the policy loan.