The advantages of the loan function introduced by insurance companies for insurance products are that on the one hand, it can alleviate the economic pressure of families, on the other hand, the loan approval speed is fast, which can speed up the capital turnover. It has different characteristics from traditional bank loans, such as less information, convenience, and quick receipt of funds.
So how to play the policy loan?
Analyze from the following points
Conditions of Policy Loan Process of Policy Loan Precautions of Policy Loan What are the conditions of policy loan?
Policy loans refer to loans granted to insurance companies according to the cash value of insurance products, and not all insurance products can be loaned.
Similar to short-term insurance products, they have no policy value and cannot be used as policy loans. The cash value of pure guaranteed term insurance products is also very low, and it is impossible to make policy loans.
Often the products of policy loans are traditional life insurance or dividend-paying products. Policy loans are based on the cash value of the policy.
The following are the provisions made by an insurance company for loans in a certain policy:
Policy loan process
Under normal circumstances, the process of policy loans is very simple, and most of them can be operated through the APP client of online insurance companies or applied through offline counters.
0 1 operate through the mobile APP.
It only needs to be verified by relevant authorities and operated by the insured, such as the policy loan of China Life Insurance. If the insured is not the same person, the mobile phone operation loan needs to be signed by the insured.
Borrowing money through the insurance company's own App client is convenient and fast, and only needs to verify the authority.
Go to the offline counter.
This requires me to be present in person, prepare loan materials, insurance policies, personal certificates and bank account numbers, submit them to the local counter, and wait for the loan to arrive after approval.
You can consult the customer service telephone of the insurance company in advance, because each company has different handling methods.
Problems needing attention in policy loans
The term of the policy loan is generally 6 months. If you need to renew, you can repay the interest first and then renew the principal. If the interest is not changed halfway, it will be included in the principal, and the interest will be recalculated in the form of a new principal.
For example, 50 yuan borrowed 1 1,000 yuan for the first time, and earned interest for six months. After paying off the interest, there was still interest of 1 1,000 yuan. If the principal is not repaid, the interest will be 1050 yuan.
Policy loans can be said to be the cash value borrowed. If the loan term is extended indefinitely, it may happen that after the loan and interest of the policy exceed the cash value, the validity of the policy will be terminated and the policy responsibilities stipulated in the policy will no longer be borne. Therefore, it is necessary to repay the loan on time.
Compared with traditional loans, policy loans have the advantages of being quick and convenient, but it doesn't mean that you can borrow as much as you want, and you should borrow according to the cash value in different proportions.
In addition, the borrower needs to pay attention to whether the cash value of the policy is enough to prevent the contract from being terminated and causing inevitable losses.