If it is really unable to repay, it shall negotiate with the lending institution to extend the repayment period or repay it in installments. If the insured fails to repay the loan, the principal and interest of the loan will be deducted from the death compensation in the life insurance policy.

Under normal circumstances, policy loans can only be targeted at policies with' cash value'. Old-age insurance, whole life insurance, old-age insurance, universal insurance, dividend insurance and other long-term life insurance with savings nature.

After one year of insurance, the policy begins to have cash value, and the longer the payment time, the higher the accumulated cash value. These policies can usually be used for policy loans, but the specific situation depends on the specific terms in the insurance contract.

Extended data:

What are the consequences of the loan money?

1. If it is really unable to repay, it shall negotiate with the lending institution to extend the repayment period or repay by installments.

2. If the lending institution fails to perform the judgment of the court within the performance period after suing the court and winning the case, it will apply to the court for enforcement.

3. When accepting enforcement, the court will inquire about the real estate, vehicles, securities and deposits in the name of the lender according to law.

4. If the lender refuses to perform the effective judgment of the court because there is no enforceable property under his name, negative information such as overdue repayment will be recorded in the personal credit report, which will restrict high consumption and entry and exit, and may even lead to judicial custody.

References:

Baidu encyclopedia-policy loan

What should I do if I can't get a loan with Ping An policy?

First, the policy loan has not been negotiated with the insurance company to postpone repayment or is overdue for being sued.

When you apply for a policy loan in Ping An, you must repay it on time, otherwise it will affect the cash value of the policy, and in serious cases it will lead to the invalidation of the policy and affect personal credit information.

II. Relevant contents of policy loans:

1. Policy loan is a loan obtained from an insurance company with the cash value of a life insurance policy as a guarantee. The one-time loanable amount of such loans depends on the effective year of the policy; The age of the insured and the amount of compensation for death when the declaration is issued. At present, there are two main modes of policy pledge loan 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 debt at maturity, 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.

2. Short-term accident insurance and health insurance, because there is no cash value, or the cash value is very low, such policies cannot be used for policy loans. Although cash value is an important factor in evaluating whether a policy can be loaned, it is not only the policy with high cash value that can be loaned. The most typical example is linked insurance. An insurance company loan secured by the cash value of a life insurance policy. The one-time loanable amount of such loans depends on the effective year of the policy; The age of the insured and the amount of compensation for death when the policy is issued. Although recent insurance policies usually only allow borrowing at interest rates linked to the money market, the interest rate of such loans to policy holders is often lower than the market interest rate.

3. If the insured fails to repay the loan, the loan principal and interest will be deducted from the death compensation in the life insurance policy. Under normal circumstances, policy loans can only be targeted at policies with' cash value'. Long-term life insurance with saving nature, such as endowment insurance, whole life insurance, endowment insurance, universal insurance and dividend insurance, will have cash value after one year of insurance, and the longer the payment time, the higher the accumulated cash value. These policies can usually be used for policy loans, but the specific situation depends on the specific terms in the insurance contract.

What if the policy loan is not due?

Failure to repay the policy loan may have the following consequences: it will affect credit. After applying for a policy loan in a bank, loans overdue will receive a credit report, and there will be overdue records in the credit report, which will affect credit; Generate a penalty interest.

Generally, there will be penalty interest after loans overdue. If the borrower fails to repay in time, the penalty interest will be relatively large; The policy is invalid. Policy loans can only be applied in cash value. If the user does not repay, the lending institution will deduct the repayment amount from the cash value of the policy. If the cash value of the policy is deducted, then the contract is invalid.

Policy loans overdue, as follows:

1. The repayment of policy credit is similar to general repayment, and it can be paid in one lump sum or in part. If the borrower is still unable to repay the credit and credit interest rate when the credit expires, the policy credit owed and the accumulated credit interest rate constitute a new policy credit;

2. If the borrower has some funds, he can partially repay the credit. The repayment method is to repay the accumulated interest first and then the principal of the creditor's rights;

3. If the borrower fails to repay the debt after maturity, the insurance company will choose to terminate the validity of its insurance contract.

Policy loan, also known as policy pledge loan, is a loan obtained by the policy holder from the 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.

At present, there are two main modes of policy pledge loan 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 debt at maturity, 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.

Insurance policy is short for insurance policy. It is a maximum credit insurance contract between the insurer and the insured. The insurance policy must clearly and completely record the rights and obligations of both parties. The insurance policy mainly states the names of the insurer and the insured, the subject matter insured, the insured amount, the insurance premium, the insurance period, the scope of liability for compensation or payment and other specified matters.

legal ground

People's Republic of China (PRC) Civil Procedure Law

Article 242 If the person subjected to execution fails to perform the obligations specified in the legal documents according to the notice of execution, the people's court has the right to inquire about the deposits, bonds, stocks, fund shares and other properties of the person subjected to execution. From the relevant units. The people's court has the right to seal up, freeze, transfer or change the property of the person subjected to execution according to different circumstances. The property inquired, sealed up, frozen, transferred or changed in price by the people's court shall not exceed the scope of obligations that the person subjected to execution shall perform.

People's Republic of China (PRC) Commercial Bank Law

Article 36 When a commercial bank lends money, the borrower shall provide guarantee. Commercial banks should strictly examine the repayment ability of guarantors, the ownership and value of collateral, and the feasibility of realizing collateral. After examination and evaluation by a commercial bank, it is confirmed that the borrower has a good credit standing and can repay the loan, and no guarantee may be provided.

Article 37 A commercial bank shall sign a written contract with the borrower when issuing loans. The contract shall stipulate the type, purpose, amount, interest rate, repayment period, repayment method, liability for breach of contract and other matters that both parties think need to be agreed.

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What should I do if I can't get a loan with Ping An policy?

If the loan is pledged by the insurance company's policy and cannot be repaid at maturity, the insurance company will use the rights and interests of the policy to offset the loan.