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.

How to apply for a policy loan

What is the process of handling policy loans? Policy loan is a kind of loan method that the lender applies for a loan from the insurance company according to a certain proportion of the value of the policy with the policy held by him as collateral. In the process of mortgage loan, the customer's insurance protection is not affected, and the policy is still valid. So what is the process of handling policy loans? Process of handling policy loans: Under normal circumstances, the applicant needs to bring the policy, the identity cards of the applicant and the insured, and the written statement of the insured agreeing to the loan application, and go to the service counter of the insurance company in person. This business can only be completed after the insurance company approves it. Loans can generally be received within 3 to 6 working days, and interest is calculated from the date of loan transfer. The loan term usually does not exceed 6 months and will be paid off before the next policy anniversary. What is the process of handling policy loans? Bian Xiao reminded everyone that although the policy loan is fast and simple, it must be returned in time within the loan period after the policy loan is completed. If the loan is overdue and the sum of the principal and interest of the loan and other arrears reaches the cash value of the policy, the insurance company will terminate the insurance contract.

How to apply for a policy mortgage loan?

A policy mortgage is a policy loan. Policy loan 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. Since the customer's insurance protection is not affected in this process, the policy is still valid. Loans are recommended by Mo Long, which are aimed at groups over the age of 25-55 who need large loans, as well as non-online lending groups, such as flowers and flowers, small degrees, etc. Students and groups need to be excluded.

Policy loan application conditions:

1, the policy is valid for more than 6 months;

2. Insurance with monthly premium above 200 yuan (that is, the annual premium is not less than 2,400 yuan);

3. Other conditions stipulated by the bank.

Application materials that the lender needs to prepare:

1, ID card;

2. Work certificate;

3. proof of address;

4. Insurance policy (three copies can be superimposed);

5. Other materials specified by the bank.

For more information about loans, please consult Mollon. Mo Erlong not only has three promises: employees are strictly forbidden to collect sincerity money privately; Do not require customers to pay liquidated damages; There is no extra charge for standard service. There are also eight guarantees: the safety of funds comes from licensed institutions; Professional loan assistance, 0 down payment without routine; Customer first, honesty as the rest assured; Refuse to disclose and protect your privacy; Legally operate and provide formal invoices; Post-loan management, guarding personal credit information; Open and transparent, all business can be checked; Adhere to integrity, do not make false promises, and have a high reputation in the same industry.

How to apply for a life insurance policy loan?

China Bank's life insurance policy refers to a personal business in which the borrower takes the unexpired life insurance policy as pledge, obtains a certain amount of RMB loan from the bank, and repays the loan principal and interest on schedule. The information submitted is as follows: (1) China Bank Life Insurance Policy Application Form; (two) the written commitment of the applicant, the insured and the beneficiary to the pledge; (3) Produce the original valid identity documents of the insured, the insured and the beneficiary (referring to the resident identity card, household registration book or other valid residence identity documents) and provide a copy; (4) The original life insurance policy with cash value issued by the insurance company that signed the insurance agency business cooperation agreement with Bank of China; (five) the insured of group insurance shall provide the written authorization of the applicant when applying for a loan; (6) Notice of Freeze of China Bank Life Insurance Policy and Certificate of Verification of Cash Value of China Bank Life Insurance Policy issued by the insurance company; (7) Other documents or materials required by the lender. As there are some differences between branches, please consult the loan handlers in detail.

The above contents are for your reference. Please refer to the actual business regulations.

How to use the policy loan?

If the user downloads the insurance company's APP or pays attention to the insurance company's official WeChat account, the insurance company usually provides policy loan service. After selecting the loan option, users can directly apply for a policy loan. Or users go to the offline outlets and bank outlets of insurance companies to apply for policy loans, and they need to bring relevant loan materials when applying.

Only policies with cash value can apply for policy loans, and policies without cash value cannot apply for loans. The policy loan amount is limited by the cash value, and users can apply for a loan amount of up to 80% of the cash value. As for the loan term, the loan term of the policy loan is not allowed to exceed 6 months at the longest.

If the loan has not been repaid for more than 6 months, the loan interest shall be calculated together with the loan principal. Users who apply for policy loans also need to pass the loan review. If it fails to pass the loan review, users can only try to apply for other loans.