One of the biggest benefits of policy loans is that in the process of pawnshop loans, not only can cash flow be obtained, but all the guarantee functions, return and dividend distribution functions of the policy are not affected.
However, this advantage is very practical, but those who want to use the policy loan must pay attention to the following three points.
1. If the repayment is overdue, the insurance company will include the interest in the principal and deduct the compensation or compensation from the policy. First, deduct the outstanding loan principal and interest from the compensation or payment. When the cash value of the insurance policy is insufficient to repay the principal and interest of the loan, the insurance contract is terminated.
2. If the insured dies when the policy loan is not repaid, the premium paid must be deducted from the loan balance, and the interest will drop obviously.
3. If the policy owner chooses not to repay, the policy is invalid.
Related suggestions:
What is an insurance policy loan? What's the difference between it and a bank loan? & ampnbsp
Why is the policy loan rejected? & ampnbsp