The necessary condition for applying for a policy loan is that the policy has a certain cash value, and the user can borrow a certain proportion of the cash value of the policy without affecting the guarantee effect of the policy. Because policies need cash value, the cash value of some policies can increase year by year. Therefore, generally speaking, the longer the user takes out insurance, the higher the value-added of cash and the more money he can borrow.
Usually, you can't apply for a loan for a newly insured policy or a policy less than one year.
The insured policy is still in the hesitation period, and it will take about half a year to apply for a loan after the hesitation period. For example, annual policies such as accident insurance, critical illness insurance and medical insurance have no cash value and cannot apply for policy loans.
Does policy loan affect credit reporting?
Whether to apply for credit depends on whether it is a policy cash value loan or a policy credit loan.
The policy cash value loan will not upload credit information, and it can probably reach 70% to 80% of the policy cash value at that time. If the repayment cannot be made on time, the insurance company will deduct it from the residual value of the policy until it is deducted, and the policy will be invalid;
If it is a credit loan, it will be uploaded to the central bank's credit information system. If you can't repay on time, it will be recorded as a bad credit.