The term "policy pledge loan" is no stranger to us, but "what is a policy pledge loan? Even fewer people know the amount and duration of the loan. Let me give you a brief introduction:
The so-called policy pledge loan refers to the short-term fund financing method that the insured obtains from the insurance company or bank according to a certain proportion of the cash value of the policy with the policy as collateral.
It is reported that the term and amount of policy pledge loans are limited. At present, the loan period of policy pledge is relatively short, generally less than six months, and the loan amount does not exceed a certain proportion of the cash value of the policy, which is different from insurance companies and banks.
In addition, we need to remind you of two points:
1. Not all policies can be pledged to apply for loans. Only policies with cash value can apply for loans. For example, medical insurance, accident insurance and property insurance cannot be used as collateral.
2. After the mortgage loan expires, it must be repaid in full and on time. Once the loan principal and interest exceed the cash value of the policy, the policy will be permanently invalid.