The policy can be loaned. Policy loan, also known as policy, refers to a loan method in which the insured mortgages the policy he holds to the insurance company and obtains funds according to a certain proportion of the cash value of the policy.

The premise is that this policy must have cash value, such as life insurance, pension insurance, dividend insurance, annuity insurance and other insurance with savings function, which can be used for loans after one year of insurance. The longer the insurance period, the higher the cash value.

The loan amount of the policy loan is determined according to the cash value of the policy. Generally speaking, the maximum loan amount cannot exceed 80% of the policy value. For example, if the policy value is 50,000, the maximum loan amount is 40,000.

Cash value of the policy = premium paid-management fee of the insurance company-interest generated by the residual premium of the pure premium for which the insurance company has assumed the insurance responsibility.

How to borrow a policy loan

Policy loan, as its name implies, is a form of guarantee based on life insurance policy and applying for a loan from an insurance company or cooperative bank that can handle policy loan within the validity period of the policy.

Regarding the loan method of policy loan, there are the following two options for users to choose:

1. Go to the customer service center of the insurance company or the bank counter where the policy loan can be handled with the valid identity certificate of the applicant, the current settlement account under the name of the applicant and the insurance contract. To handle this business, the applicant needs to make an appointment in advance;

2. You can entrust others or business personnel to handle it. On the basis of the above information, you can prepare the client's ID card and power of attorney.

It should be noted that not all insurance companies can apply for policy loans. The insurance company or bank will decide according to the policy share, insurance type, effective year and compensation amount. The maximum amount of a general policy loan is generally 80% of the cash value. Short-term cash with low value such as accident insurance and medical insurance cannot be used for policy loans, while life insurance such as long-term annuity insurance and universal insurance or large critical illness insurance can be used for policy loans.

Can I get a loan with a policy?

You can use a policy loan, and the procedure is relatively simple. If you want to use the policy loan, the insured needs to bring the original policy, the original ID card and the policy loan application form. Generally speaking, after the application is successful. The loan money will be transferred to the bank account where the insured pays the premium, and the time to receive the loan is about 1-3 days.

Policy loan is actually similar to general stock pledge, and the bank will determine the amount of loan according to the "cash value" of the policy. The upper limit of policy loans varies according to the regulations of various insurance companies, generally between 80% and 90% of the cash value of the policy, and the upper limit of loans of a few insurance companies can be as high as 95% of the cash value.

The role of policy loans: 1. Through policy loans, people can greatly meet short-term needs. 2. The policy loan procedure is simple, and you can get the funds on the same day. 3. The original protection function of the policy is still valid after the loan, and you can also participate in dividends at the end of the year. 4. No creditor-debtor relationship is formed. Therefore, if the debt is not repaid at maturity, the debt liability will not be investigated.

What does a policy loan mean?

Policy loan, also known as policy, is a loan obtained from an insurance company by the insured with the policy as collateral. Policy holders can get policy loans because their policies have cash value. With the implementation of the balanced premium system, the premiums paid by the insured in whole life insurance at the initial stage of the policy are higher than their current expenditures, thus accumulating year by year and forming a certain cash value. 2. When obtaining a policy loan, the insured does not promise to repay the loan principal and interest, because the funds obtained by the insured come from the cash value of his policy, which is a part of the funds that the insurance company must pay him in the future. Policy loans enable policy holders to advance this part of the funds. 3. There are two main modes of insurance policy in China: one is that the insured directly mortgages the policy to the insurance company and obtains the loan directly from the insurance company. If the borrower fails to perform the due debt, the insurance company will terminate its insurance contract when the loan principal and interest reach the surrender amount; The other is that the policyholder mortgages the policy to the bank, and the bank pays the loan to the borrower. When the borrower fails to perform the due debt, the bank can repay the loan principal and interest by the insurance company according to the contract. 4. From a certain point of view, insurance policy is a new business for insurance companies to explore innovative business channels and extend service areas. The development of this business, for insurance companies, has stabilized customers, ensured premium income, given new functions to insurance policies, strengthened the marketing of insurance policies, and expanded the investment effect of customers buying insurance; For customers, it relieves the pressure of capital demand and solves the "dilemma" problem that customers will lose money when they surrender, but they will not surrender and have no money to do things. In a sense, insurance policy is the product of the development of insurance from the original single function of sharing risks and digesting losses to multiple functions such as saving and investing. 5. The insurance business has a lot of room for growth. However, China's current insurance law does not clearly stipulate the life insurance policy system, but only indirectly confirms the pledge of life insurance policy in the form of prohibitive norms in Article 56. This article stipulates that an insurance policy issued in accordance with the contract with death as the condition for payment of insurance benefits shall not be transferred or pledged without the written consent of the insured. The negative interpretation of this article is that the life insurance policy can be transferred or pledged with the written consent of the insured. 6. Through the policy loan, the insurance company pays the insurance premium in advance for the insured, so that its policy will not be invalid because of the failure to pay the insurance premium, or when the funds can be obtained through the policy loan to meet other capital needs, the insured will not choose the way of obtaining termination payment through surrender. In this sense, policy loans are conducive to maintaining the efficiency of insurance companies' policies. On the other hand, if the market interest rate rises, policy loans increase, and the cash expenditure of insurance companies increases, the funds invested in other assets will decrease accordingly. In more serious cases, if there are too many policy loans, the insurance company may be forced to sell some assets under unfavorable circumstances to obtain cash to meet the policy loans, which will have a negative impact on the operation of the insurance company.

How to apply for a policy loan

Policy loan, also known as policy, is a loan obtained by the policy holder from an insurance company with the policy as collateral. Policy holders can get policy loans because their policies have cash value. With the implementation of the balanced premium system, the premiums paid by the insured in whole life insurance at the initial stage of the policy are higher than their current expenditures, thus forming a certain cash value through year-on-year accumulation.

The main functions of policy loans:

1. Through the policy loan, the policy holder can alleviate the temporary financial shortage, and at the same time, his policy will not be invalid. Even if the principal and interest of the loan are not repaid, he can still get compensation if an event within the scope of insurance liability occurs. Moreover, the policy loan procedure is simple, and the borrower does not need any mortgage property such as credit certificate, as long as the policy has a certain cash value, it can be loaned.

2. Through the policy loan, the insurance company pays the insurance premium for the policy holder, so that the policy will not be invalid because of the failure to pay the insurance premium, or the policy holder will not choose the way of obtaining the termination fee through surrender when he can obtain funds through the policy loan to meet other capital needs. In this sense, policy loans are conducive to maintaining the efficiency of insurance companies' policies.

3. If the market interest rate rises, the policy loan increases, the cash expenditure of the insurance company increases, and the funds invested in other assets will decrease accordingly. In more serious cases, if there are too many policy loans, the insurance company may be forced to sell some assets under unfavorable circumstances to obtain cash to meet the policy loans, which will have a negative impact on the operation of the insurance company.

Can I get a loan from my personal insurance policy?

Pacific insurance policies can be used for loans, but not all policies can. Only life insurance policies with savings nature such as life insurance, dividend insurance, endowment insurance and annuity insurance can apply for policy loans, while universal insurance, investment-linked insurance, short-term accident insurance and medical insurance cannot apply for this service.

The premise of policy loan is that it has been insured for more than two years and the insurance account has cash value. Usually, the maximum loan provided by an insurance company is 70% to 80% of the cash value of the customer's policy.

Insurance policies are only suitable for short-term use, not for high-risk investments such as stocks.

Policy loans must be applied by the applicant or the insured, and may not be entrusted; Insurance policies that have been exempted from premium cannot be handled, which is more common in children's insurance

Extended data:

Insurance policy is an innovative means for insurance to break through the original single function of sharing risks and digesting losses and develop into multiple functions such as saving and investment.

The policy loan is a credit loan and does not need to be mortgaged. The minimum loanable amount is 30 times of the annual payment of the policy. According to the different qualifications of each customer, the loan amount can even reach 60 times of the annual payment of the policy, 120 times, and the loan can be released on the same day at the earliest.

The policy loan processing procedure is very simple. Customers only need to bring their ID cards and insurance policies. The amount of the policy loan will not have any impact on the cash value of the policy. After withdrawing the cash value, you can also apply for the policy loan of the policy. Whether the policy is invalid is related to whether the customer pays the fee normally, and has nothing to do with the loan amount.