The mortgage loan of the policy shall not exceed 8% of the cash value of the policy at most. The specific mortgage loan amount of the policy is determined according to the cash value of the policy. Of course, the credit status, economic strength and liabilities of the policy holder are all factors for the insurer to consider the loan amount.

It should also be noted that the term of the policy loan is not long, generally within 6 months. If the lender fails to repay the loan at the due date, it will be regarded as a breach of contract. Not only will you have to pay interest on the fine, but you may also be terminated. Of course, if the loan term exceeds 6 months, you can make a revolving loan. When a revolving loan is issued, only the interest of the previous loan cycle needs to be repaid. At the same time, as the new value date, the repayment date will be extended.

will the policy be invalid if the policy loan is not paid?

will not fail. If the customer fails to repay the policy loan, the insurance company will deduct the corresponding amount from the policy claim to pay the loan principal and interest. When the loan principal and interest are lower than a certain percentage of the cash value of the policy, the insurance contract will be terminated.

It should also be noted that if the principal and interest are not repaid at the maturity of the loan, the policy loan owed and the accumulated interest of the loan will constitute a new policy loan, which will be charged at the policy loan interest rate the day after the maturity date.