What are my options for repaying the loan after it has gone into default?

Personal Check to Payoff Loan:
The loan can be paid off. However, the only option available is a LUMP SUM payment of the entire loan default amount plus any accrued interest.

Forfeit Outstanding Defaulted Loan:
When a participant incurs a triggering event - turns age 59½, severs from service, is disabled or dies - the owner may request the loan be forfeited, or internally surrendered. A financial hardship is NOT a qualifying reason to forfeit an outstanding loan!

If the contract has a Pre-1987 Grandfathered amount remaining on the contract
, this amount is available to withdraw in order to pay off the defaulted loaned amount plus any accrued interest. However, if there is not enough pre-1987 grandfathered amount available to make the total payment, this option is not available. In order to exercise this option, Security Benefit must be notified in writing.

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(800) 888-2461


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Topeka, KS 66636


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Topeka, KS 66636-0001