Generally, you can borrow 70% to 80% of the cash value of the policy at that time. How much the policy loan can be borrowed depends on the cash value of the insurance contract at that time. Generally speaking, only annuity insurance, long-term critical illness insurance, whole life insurance and other insurance products with high cash value can be used for policy loans. Generally, you can borrow 70% to 80% of the cash value of the policy at that time, and the policy is still valid.
For example, Mr. Li bought a whole life insurance, and the contract stipulated that the cash value of the insurable loan was 80%. Then in the tenth year, when the cash value of the policy is 654.38+10,000 yuan, Mr. Li can lend 80,000 yuan, and the policy is still valid. First, what kind of insurance policy can I borrow?
How much can I borrow from the insurance policy to buy a house? If you come with this attitude, you will inevitably be disappointed.
The precondition of policy loan is that the product should have cash value.
For example, products with relatively high cash value such as annuity insurance, long-term critical illness insurance and whole life insurance can be used for policy loans, while products with no cash value such as medical insurance, one-year critical illness insurance and term life insurance cannot be used for policy loans.
In addition, the policy loan has no leverage. The money it lends is related to the cash value of your policy, which is generally 70%~80% of the cash value. In other words, if your insurance policy is now worth 6.5438+10,000 yuan, you can borrow about 80,000 yuan.
Therefore, don't spend thousands of dollars on insurance loans, which is unrealistic.
But apart from this restriction, policy loans are basically advantages. Let's take a closer look.
Second, the three advantages of policy loans
The loan is convenient and the interest is low. Some companies can only pay interest.
The first advantage of policy loan is that it is convenient to borrow money, fast to make the next payment and low interest.
The insurance company knows exactly how much our policy is worth, so it doesn't need any complicated steps to apply for a policy loan. Just take your own insurance policy and personal documents and go directly to the insurance company. You don't need to check your credit or mortgage anything. Some insurance companies can operate directly on the APP.
The loan interest varies from company to company, but it is generally lower than the bank's credit loan (about 6%), ranging from 4.5% to 5.3%.
Moreover, because the cash value of the policy will continue to increase, we actually need to pay less interest, and even the increase in cash value is higher than interest.
Suppose you buy an annuity with a predetermined interest rate of 4.025%, a cash value of 1 10,000 and a loan of 800,000. After one year, the cash value increased by 42,500, resulting in loan interest of 39,200.
This part of interest can be covered by the cash value increase of the policy itself.
Moreover, some insurance companies have very flexible repayment methods of policy loans-they can repay the principal and interest in one lump sum, or partially, or even continue lending at interest.
In other words, as long as you can afford the interest, you can always use the money, so that you always have plenty of money at hand. If you have confidence in your investment ability, you can even reinvest the money to make a profit, which can not only offset the loan interest, but also have a surplus.
Of course, most people still suggest saving it. Investment is risky. Don't use the money originally used for protection to invest. If the borrowed money is not returned, the cash value of the corresponding policy will be deducted. After the deduction, the policy will be invalid.
(2) The guarantee still exists. With 20% of the money, it will be 80% effective.
Another advantage of policy loan is that we lend money, but it does not affect the effectiveness of the policy, and the guarantee is still there. Buy 654.38+00,000 for life and pay for 20 years. The total premium and cash value is about 300,000.
It is equivalent to three times the lever.
At this time, we can lend 80% of the cash value through the policy loan, which is 240,000. After the loan, our guarantee still exists. If you need to make a claim, you can still get a claim, just deduct the sum of the loan principal and interest.
Then at this time, we will get a guarantee of 760,000 yuan with 60,000 yuan (6,543.8+0,000 insured amount minus 240,000 loans), and the remaining 240,000 yuan on hand can be used for investment.
The lever becomes 13 times.
This is equivalent to using 20% of the money, sacrificing a little interest, achieving an 80% effect, expanding the leverage of protection and maximizing the use of our funds.
(3) One money can be used for two purposes, "both buying a house and providing for the elderly"
Of course, the most powerful thing about policy loan is that it allows us to use one sum of money as several sums of money at a very small cost.
For example, children need to buy a house and the elderly need to provide for the elderly. What if there is only one sum of money?
Very simple, pay the money into a high-priced pension annuity, then lend it out through a policy loan, and then let the children repay the loan slowly.
In this way, with parents' pension money, children can also buy a house as soon as the house price rises. Moreover, because annuity insurance can be converted into compound interest of about 3.5% for a long time, the interest rate of policy loans is generally between 4.5% and 5.3%, which is equivalent to the interest rate of 1% for children to buy a house and repay the loan.
This is much lower than the mortgage interest rate (4.87%~6.23%). In addition, because the repayment method of the policy loan is relatively free, children can choose to pay it back monthly or once every six months. If they don't have enough money, they can only pay interest first, which is perfect. This is just an example of a policy loan. A sum of money can be used in many places, but there will be more abundant applications in real life, waiting for you to explore.
What is the maximum loan for a policy loan?
When money is tight and money is needed, but there is no job, no mortgage, but insurance. In this case, can I use a policy loan? What is the maximum loan amount of a policy loan?
The policy amount is determined according to the cash value of your policy, which generally does not exceed 80% of the cash value of your policy. For example, if the cash value of your policy is 6,543,800 yuan, then you can borrow up to 80,000 yuan. The cash value of each insurance policy is different. There is a cash value table in the insurance contract, and the cash value is different every year.
Ms. Liu bought a dividend insurance and paid the premium of 654.38+10,000 yuan in one lump sum. Two weeks after the insurance, Ms. Liu applied for a loan under the guidance of the insurance agent because of the urgent need for project investment, and successfully applied for 780,000 yuan. However, it should be noted that the term of policy loans is generally controlled within half a year. If it expires, it is not a breach of contract, not only a penalty interest will be paid, but the contract may also be terminated. If it is more than half a year, you can cycle the loan. When revolving the loan, you only need to pay off the interest of the last loan cycle, and at the same time take the repayment date as the new value date, and the loan period of the policy will be extended.
In addition, not all insurance policies can be used for loans. Some people think that only life insurance, dividend insurance, old-age insurance, annuity insurance and other insurance policies with savings nature can apply for loans from insurance companies, and the regulations of various insurance companies on the expected annualized interest rate of loans are also different.
The following types of policies cannot be processed:
1. Short-term accident insurance and health insurance cannot be loaned because they have no or very low cash value;
2. Medical expenses insurance, property insurance without mortgage conditions, and children's insurance with premium exemption function cannot apply for loans;
3. Investment-linked insurance with a premium of more than 654.38 million yuan can quickly accumulate considerable cash value, but its value fluctuates with the price of the investment unit, so it is impossible to determine its value.
What's the interest rate of the policy loan?
Policy loan is a loan obtained from an insurance company with the cash value of the policy as the guarantee. So, what's the interest rate of the policy loan? The interest rate of policy loans is different from that of commercial bank loans. Mainly compares the interest rate of two-year resident time deposit issued by the People's Bank of China on the first business day of each month with 2.5%, and then adds 2.0% to calculate on a larger basis. Because the benchmark interest rate for two-year deposits announced by the central bank is 2. 1%, the interest rate for policy loans is generally around 5.5%. However, different types of insurance and companies will have different policy loan interest rates. Please consult the staff of the insurance company for specific loan interest rates. If you need a short term, you can apply for a policy loan. However, when applying for a policy loan, it should be noted that the premise of a policy loan is that it has been insured for more than two years and the insurance account has cash value. Usually, the loan amount provided by the insurance company is about 70% to 80% of the cash value of the policy.
Can the policy be loaned? How much can I borrow?
You can borrow money. In general, the loan amount is between 20 times and 40 times of the premium, and it can also be said that it is between 70% and 90% of the cash value. However, the specific loan amount is different according to different insurance companies, and the corresponding loan amount is different according to the actual product contract.
What is the maximum loan for a policy loan? The loanable amount is 70%-90% of the cash value of the policy agreed by most companies.
Different companies have different regulations on how much money a policy can borrow. Most companies stipulate that it is 70%-90% of the cash value of the policy.
Take an insurance company in Jiujiang as an example, the minimum loan amount is not less than 500 yuan, and the accumulated loan amount does not exceed the specific provisions in the loan terms of the insurance contract. General products agreed not to exceed 70% of the cash value, and some products agreed not to exceed 90% of the cash value.
If the large loan exceeds 200,000, I need to handle it myself. If calculated by 70%, a traditional life insurance policy with a cash value of 200,000 yuan can borrow about 200,000 yuan × 70% = 6.5438+0.4 million yuan.
At present, the annual interest rate of policy loans promoted by insurance companies is generally between 5% and 7%, and the term is generally half a year. Some policies can also apply for the function of not repaying the principal, not renewing the insurance and paying interest in installments. This means that the actual loan period can be as long as 1-2 years. Compared with the cumbersome procedures for banks to handle loans, many policyholders can consider using policies with the function of policy loans to go to insurance companies to handle loans.
The general manager of a life insurance company said that the insurance demand has undergone subtle changes in recent years. Few customers would have thought of using the function of policy loan before.
Now, more and more customers regard policy loans as an important means to solve the problem of capital flow in the short term. Compared with bank loans, policy loans have the characteristics of convenient procedures and low interest rates.
If some customers don't repay the loan, or can't repay it in time, then the interests of the lender will also be damaged.
If the repayment is not made on time, or the loan is not fully paid off, at the expiration of the policy contract, the unpaid arrears and the interest generated will be deducted from the insurance premium that the insurance company or the insurance company needs to pay in case of an accident, and then paid.
Can all policies be loaned?
In fact, not all insurance policies can be loaned.
Policy loans are based on the cash value of the policy. If the insurance you buy has no cash value, you can't make a policy loan.
Generally speaking, short-term insurance, such as one-year accident insurance, medical insurance, critical illness insurance and so on. There is no cash value or little cash value, so it is impossible to make policy loans.
Those who can make policy loans are all long-term life insurance with cash value of the policy, such as life insurance, dividend insurance, annuity insurance, long-term critical illness insurance and so on.
Because the value of investment-linked insurance is always changing, it is generally impossible to make policy loans.
In addition, if your policy has been deductible, paid automatically or is applying for a claim, you can't make a policy loan.
How much is the interest on Ping An policy loan?
Ping An Bank's policy loan has an annual interest rate of 4.25%, and the specific interest is related to the loan amount and loan term. If it is a policy loan, you can get 80% of the cash value and the interest rate is 5.6%. If it is a safe and easy loan, the interest rate is very high, with a monthly interest rate of 2.3% and an annual interest rate close to 30%. Data development interest is the use fee of money in a certain period of time, which refers to the reward that money holders (creditors) get from borrowers (debtors) for lending money or monetary capital. Including deposit interest, loan interest and interest generated by various bonds. Under the capitalist system, the source of interest is the surplus value created by hired workers. The essence of interest is a special transformation form of surplus value and a part of profit. 1. Money other than the principal of deposit and loan (different from "principal"). 2. The abstract interest point refers to the appreciation when monetary funds are injected and returned to the real economy. Generally speaking, interest is the reward paid by the borrower (debtor) to the lender (creditor) for using the borrowed money or capital. Also known as daughter gold, mother gold (main) symmetry. The calculation formula of interest is: interest = principal × interest rate × deposit period (i.e. time). Interest is the reward for the owner of the fund to lend the fund, which comes from a part of the profits formed by the producer using the fund to perform business functions. Refers to the value-added amount brought by the injection and return of monetary funds to the real economy. The calculation formula is: interest = principal × interest rate × deposit period × 100%. 3. According to the nature of banking business, bank interest can be divided into bank interest receivable and bank interest payable. Interest receivable refers to the remuneration obtained by the bank from the borrower by issuing funds to the borrower; It is the price that the borrower must pay when using the funds; It is also part of the bank's profits. Interest payable refers to the remuneration paid to depositors by banks to absorb deposits; It is the price that banks must pay to absorb deposits, and it is also part of the cost of banks. Interest rate is the basis of calculating interest amount and an important lever to adjust economic development. For money lenders, it means income, and for money users, it means cost.
How to use the policy loan, and how much can I borrow?
China Bank has life insurance. The loan amount of life insurance policy shall not be less than RMB 65,438+0,000, and the loan pledge rate shall not exceed 80% of the cash value of life insurance policy used as pledge.
The above contents are for your reference. Please refer to the actual business regulations.