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The reduction of death benefit is the biggest impact.

Be wary of letting the policies lapse though. If you borrowed above your cost basis (premiums paid), the loans will become normal income and will taxed as such.

If your policies are performing well enough to absorb the interest due and still keep your policy in force, there is really no reason to pay them back...that's what they're there for. However, if they are being eroded by the interest, there is a strong chance you will receive an additonal premium due notice to keep them in force, thus leaving you with the dillemma to surrender or pay up.

If it's not a burden and you are still able to save for retirement, you can pay them back on your own schedule. Keep in mind that you are essentially paying yourself back.